Quebec asked to cut supply to crypto mining
The process of creating new cryptocurrencies is called Crypto Mining which uses electrical energy and its high energy consumption has now led to power shortages in several regimes due to greatly increased mining activities.
Quebec, a Canadian province, issued a request for approval of the distributors’ 2023-2032 supply plan as it faces a power shortage problem. Hydro Quebec is a Power Managing company that recently submitted a report on November 1, 2022.
Submitted request
Signed by Nadhem Idoudi, Senior Director of Integrated Planning and Development of Business Strategies at Hydro-Québec, at 75, boul. René-Lévesque O., of the City of Montreal, Province of Quebec, solemnly affirms that-
The application of Hydro-Québec in its distribution business of electricity (the distributor) has been prepared in part under his supervision and his control, he has been employed by Hydro-Québec since 2004 and holds the position of Senior Director of Integrated Planning and Development of Business Strategies, and this since 2022 .
Nadhem Idoudi added that during the preparation of the procurement plan for 2023-2032, he participated in the analysis of the situation of the balance between supply and demand in energy and power to the distributor, especially with the aim of establishing planning of supplies.
He then saw in his planning under normal climatic conditions, the distributor then considers further purchases planned beyond 3 TWh in the winter period which represents a significant volume, and sufficient to require a long-term supply.
In its decision D-2022-062, issued on 19 May 2022, the Régie considers that the distributor’s strategy of using short-term markets contributes sufficiently to manage the vagaries of energy demand.
As can be seen from the energy report presented in Annex HQD-2, document 3, the additional energy needs in winter are high, without the addition of cost associated with the balance of the block reserved for cryptographic use on blockchains (the reserved block). Energy purchases of almost 3 TWh are expected in the winter from 2025 and even over 3 TWh in 2027.
Any significant surcharge added to the energy demand forecast linked to the balance of the reserved block will therefore put further pressure on the volumes of additional energy to be procured. The distributor is of the opinion that it is important to limit, as far as possible, the risk of this happening.
The addition of the entire remaining balance of the reserved block, in the order of 270 MW, will have an impact on the need of approx. 2.2 TWh annually, and approx. 700 GWh in winter.
The significant reduction in energy quantities for this category of customers will limit the impact of this clientele on Hydro-Québec’s energy balance and will help to maintain the energy balance.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
