Quebec blockchain miners may face power cuts from grid operators
Quebec’s block reward miners are bracing for energy cuts from the region’s grid operators following a complaint by public utility Hydro-Quebec to distribution regulator Regie de l’energie.
The complaint was included in Hydro-Quebec’s electricity supply plan 2023-2032, which predicts a 14% increase in electricity demand from the city. The report warns that the city’s electricity consumption could increase by a further 25 terawatt-hours (TWh) during the 10-year window.
To slow the trajectory of energy demand, Hydro-Quebec issued several recommendations, notably cutting block reward miners from the grid. A request has since been submitted to the Regie de l’energie to suspend the electricity allocation to block the reward of mining companies.
“During this process, approximately 270 MW was estimated to be dedicated to cryptographic use in the short term, but the allocation of that amount of capacity to this use will increase the pressure on current balances,” according to the official statement.
It is not clear whether the grid operator will agree to the demands from Hydro-Quebec. The global energy crisis and an upcoming winter have left Quebec’s block reward miners in a pensive mood, with some considering the possibilities of off-grid energy sources.
Aside from the option to cut off miners, Hydro-Quebec rolled out several other options to slow rising energy demand. Demand response tools such as the “Efficient Heat Pump Program” for residential customers, the announcement of new tenders to increase production capacity, and “proactive management of our generation resources.”
Miners are considering other energy sources
Climate change campaigners have put block rewards on miners for the sword over the economic consequences of their activities. This has forced some miners to explore other sources of energy to power their operations.
In North America, Stronghold Digital Mining has used waste coal products as a fuel source. The mining company purchased the abandoned Panther Creek Energy Facility and expects to process 4 million tons of waste coal during the first five years of operation.
El Salvador is looking to use geothermal energy from the country’s volcanoes to mine BTC, while other jurisdictions are considering a switch to hydro and solar power.
Grid-dependent mining companies are currently going through a rough time, with Iris Energy (NASDAQ: IREN ) and Argo (NASDAQ: ARKBF ) staring at the strong possibility of bankruptcy. Core Scientific (NASDAQ: CORZ ), a BTC mining company, says shares fell more than 75% after an announcement that its cash reserves could dry up by the end of the year.
See: BSV Global Blockchain Convention panel, Blockchain mining and energy innovation
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