The firm responsible for the management of electricity throughout the Quebec province has a different approach toward cryptocurrency mining.
The name of the particular firm is Hydro-Quebec and it wants to implement reallocations of energy to the firms using it for cryptocurrency mining.
Tweet from Pierre Fitzgibbon
Pierre Fitzgibbon, a lawmaker in Canada recently tweeted about what the government plans on doing in regard to the cryptocurrency mining firms.
He tweeted on November 3 that they will be launching a request at the energy board to be released from the obligation involving cryptocurrency firms.
The obligation binds them to provide energy and power to the cryptocurrency mining firms in the province. If the energy board approves their request, they will not be obligated to provide energy to these firms.
Energy Allocation to Crypto Miners
According to the latest statistics, Hydro-Quebec is providing cryptocurrency miners with a tremendous amount of energy. The data shows that 27 megawatts have been allocated to daily mining activities.
However, Hydro-Quebec has reasons to believe that the energy demand in the province would rise tremendously. If that happens, the situation would not be favorable for the mining firms.
As the demand grows, the pressure would be on Hydro-Quebec and it would be mainly due to the cryptocurrency mining firms.
Therefore, they will need to take precautionary measures that could also mean putting a stop to providing energy to the mining firms for good.
Reported Filed by Hydro-Quebec
For now, Hydro-Quebec has submitted a report to the energy board of the government. The report filed shows that the provisioning of power would be reduced to the cryptocurrency mining firms.
With the approval, Hydro-Quebec would reduce the power supply to the mining firms and that would remain in place temporarily.
By doing this, Hydro-Quebec would ensure that the residents in the Quebec province are provided with security and reliability without any interruptions.
The distributor has confirmed that it has taken all possible sectors into consideration when coming up with the filing. The data they have analyzed also includes greenhouse farming and cryptocurrencies.
They have also run the calculations based on the production of electricity from green hydrogen.
In the report, Hydro-Quebec officials mentioned that the demand for energy during the winter is going to rise significantly.
The most concerning part are that they have not even taken into consideration the demand for cryptocurrency mining firms.
Canada is among the countries where the electricity costs are consumer friendly. This is the reason why a great surge has been recorded for cryptocurrency mining firms in the country.
As more crypto mining firms keep opening up in Canada, there is not much benefit that the country has seen apart from the potential of falling short on demand for crypto firms.