Last week Quebec’s public power utility has submitted plans to the government that would clear the way for Hydro-Quebec to set up a new process of providing energy to cryptocurrency miners.
Hydro-Quebec for Cryptocurrency Miners
The plan involves a selection process where Hydro-Quebec would parcel out 500 megawatts worth of power to crypto miners. For reference, 1 megawatt hour can serve about 650 residential homes. Bids for chunks of that power would have to be submitted to Hydro-Quebec and decisions would be based on their ability to create jobs and economic benefits to Quebec. “Proposals would be accepted based on the following criteria:
- Proposed increase to the price (¢/kWh) of the energy component of rates M or LG in effect, as applicable, with a minimum increase of 1¢/kWh.
- Maximizing economic spinoffs for Québec:
- Number of direct jobs per MW
- Total payroll of direct jobs in Québec per MW
- Investments per MW”
A Time Sensitive Development
Hydro-Quebec suggested that it is working hard to find a solution to the issue in a timely manner. The government released a report last month on power usage that cited unprecedented use of power. A final criteria for the choice is based on how quickly the mining facility would be up and running.
Power Demand – Miners vs. Citizens
The utility company also wants to put a cap on the amount of power that crypto-miners can draw during the year, to make sure that the industry isn’t putting out quality services of the citizens. That same concern has been at the heart of many of the disputes seen in North America between crypto miners, local governments and residents.
“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.”
Growing Influence of Cryptocurrencies
Cryptocurrencies are pressing influence on governments and society in numerous ways, such as the recent U.S. court ruling that highlights a changing definition of “money,” a cryptocurrency movie, spurring local economies and developing ways to more effectively help refugees around the world.
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