Quebec’s Energy Board Commits 300MW Energy for Crypto Mining Activities, Looks to Be a Major Force
The French province of Canada, Quebec, had previously frowned upon the crypto sphere, especially when it came to crypto mining. Their distaste led them to charge crypto miners three times the price for the use of electricity in the province. This has all changed, with Quebec setting aside 300MW block for crypto mining reports News.Bitcoin.com.
As per the claims made, Hydro Quebec, a public utility that manages the creation, transmission, and distribution of electricity in Quebec, is happy with the decision, as this implies welcoming and introducing the crypto industry to their homes, along with ensuring that its people can benefit from the technology as well.
News.Bitcoin.com reported that 300MW block will be devoted to this respective industry, with specific classifications. In particular, of the 300MW, 50MW will be reserved for smaller projects that require 5MW or less. In addition, economic growth has also been considered in the allocation process. That is, Quebec hopes for:
- Number of direct jobs in Quebec per MW to be 30%
- Total payroll of direct jobs in Quebec per MW to be 30%
- Investment in Quebec per MW to be 30%
- Environmental considerations, i.e. 10% of used energy to be derived from “heat recovery”
Apparently, there are some restrictions as well, where the province may limit supplies, “during peak periods,” which addresses the use of electricity during their cold winters. For each winter, a total of 300 hours is deemed acceptable. As for how said businesses will be billed, it will be dependent on their established tariff, which depends on how businesses are classified (either large-power customers or medium power customers).
The news outlet also seems to have reached out to Hydro-Quebec’s Director of Business Development, David Vincent. When asked whether the province’s decision comes at a right time, especially with the market gradually making its way up, Vincent said it is. However, he also noted that Quebec could have also benefited from said business proposals during the bear market because of their competitive advantage, i.e. low electricity costs.
Here’s as per his quotes:
“Even last year after cryptocurrencies had dropped significantly, a survey we did with some serious players who had contacted us confirmed that there was still a lot of interest for our electricity. Even during a bear market, Quebec is in a good position to attract projects […] as low rates become even more important to stay profitable.”
While one might be happy to hear that Quebec is happily welcoming crypto businesses, it seems like this is not new. That is, 368MW has already been approved in the past and that the 300MW is an addition to attract more crypto mining projects – totaling 668MW block altogether.
When asked whether the current block of electricity was sufficient to set Quebec on the map as a potential competitor, Vincent shared that it is big enough. He also added that the goal isn’t necessarily to emphasize on one industry but to create a balance between the existence of several. He trusts that:
“We feel that this block is a good start for this nascent industry and it will allow us to get a better mutual understanding.”
As for what might have caused Quebec to change its mind, amidst its previous attempts at limiting cryptominers, Vincent confirmed that it has nothing to do with “political influence.” More specifically, he noted that:
“The Energy Board is an economic regulation agency that is independent of the government and stays clear of political influence. Anyone who has followed the hearing at the Energy Board closely will tell you that the decision seems to be in line with concerns voiced by those who participated in the public hearings.”