Cryptocurrency mining companies in Quebec to be allocated 500MW of Electricity
Cryptocurrency mining companies in Quebec to be allocated 500MW of electricity according to a proposal submitted by Hydro Quebec on Thursday. The Canadian province is a favourite destination for Cryptocurrency miners. Its cheap hydro power attracts miners as it helps in the profitable expansion of their businesses.
Earlier this year, Les Affaires, a Canadian newspaper reported that Hydro Quebec is turning down new Blockchain based clients. This was in response to an order from the Canadian govt. This order instructs the Régie de l’énergie to address the conditions governing the sale of electricity to cryptocurrency companies. Régie de l’énergie is an economic regulator of distribution of electricity within the state.
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Hydro Quebec has submitted to Régie de l’énergie, a new framework for selling of electricity to cryptocurrency miners. The motive of these regulations is to maximise economic spin offs for Quebec and revenue for Hydro Quebec. This will further help in reducing electricity rates for customers stated the company in a press release.
Hydro Quebec has decided to allocate 500 MW electricity to the Blockchain industry, according to their press release. On the approval of the new framework from Régie de l’énergie it will allow cryptocurrency miners to submit bids to the company. These bids will be assessed by the company based on their abilities to create jobs and economic benefits for Quebec.
Hydro Quebec wrote, “The economic analysis will favor customers who will be ready to operate their facilities as quickly as possible. In addition, Hydro-Québec could request that these customers decrease their electricity use, for a maximum of 300 hours per year, to allow it to ensure the delivery of electricity to all of its customers, particularly during the winter peak period.”
Hydro Quebec cited an unprecedented demand of electricity from the Blockchain industry earlier this month. They have been receiving thousands of applications from cryptocurrency miners this year. But Hydro Quebec pointed out that it would not be possible to provide sufficient power to set up all facilities. The firm put a cap on electricity to free up more electricity for consumers.
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