New Crypto Mining Rules Introduced By Canadian Province Of Quebecbr>
Regie de l’energie, the energy authority of the Canadian province of Quebec, has released new rules for crypto miners in the province.
The new rules requires Hydro-Québec, a public utility that manages the generation, transmission, and distribution of electricity in the region, to set aside a combined 668 megawatts (MW) of hydroelectric power for crypto mining. More than half of the energy is reserved for existing projects, with the remaining 300 megawatts aimed at new businesses.
“We’re happy with this development as it will allow us to move forward with a selection process for the allocation of a 300-MW block of electricity to the blockchain industry,” Hydro-Québec said in its announcement. “This 300 MW will be in addition to the 158 MW already granted to existing customers approved by Hydro-Québec, and to the 210 MW granted to existing customers approved by municipal distributors.”
The selection process will be launched in the coming weeks and will be based on the following grid, presented in the decision of the Regie de l’energie. According to the decision, Quebec will favour crypto mining companies that create jobs or investments in the province and use the energy generated through mining for other purposes, like heating neighbouring buildings. Companies will continue to pay either 3.46 cents or 5.03 cents per kilowatt hour, plus additional costs based on their regional utility contract.
In July 2018, the energy authority gave Hydro-Québec permission to charge higher rates to miners and blockchain-based companies. At 15 cents per kilowatt hour (kWh), the tariffs are double the rate paid by Hydro’s residential clients. The rate increase is not applicable to those developers who have existing agreements with the energy distributor.