Authorities in Manitoba declare new cryptocurrency connectivity We are temporarily suspending mining facilities to the power grid. Canada’s provinces, which rely heavily on hydroelectric power and attract cheap miners, fear overwhelming energy demand.
Manitoba suspends new cryptocurrency mining operations due to potential increase in electricity usage
It has stopped new connections to the hydroelectric grid, Canadian news outlets reported. Officials explain the move to the potential for increased energy demand that the region may not be able to meet.
The 18-month moratorium will not affect 37 mining operations currently in operation, according to an article in the Toronto Star. The measure is intended to stem the growing demand to power new facilities with total capacity equivalent to a significant portion of the state’s electricity supply.
Manitoba Finance Minister Cameron Friesen, who is in charge of state-owned company Manitoba Hydro, commented on Monday:
“Well, anyone? You can get as much [energy] as you like, just build dams.” If you put your price on the [transmission] line, the last one will cost you $13 billion.
He has the second lowest electricity bill in Canada, and only Quebec offers cheaper electricity. Manitoba will attract users with high power needs, such as those involved in extracting energy-intensive cryptocurrencies.
Friesen revealed that 17 new operators have submitted requests to state authorities for a total of 370 megawatts of power. This is more than half of the electricity produced by the Kayask hydroelectric power plant, which started operating in 2022.
The region’s Finance Minister also highlighted concerns from progressive Conservative governments that blockchain businesses may not create many jobs. “It could take hundreds of megawatts and have a handful of workers,” he elaborated.
“Manitoba Hydro cannot make discretionary decisions about who to connect,” he stressed Friesen. A government review is expected to analyze the economic impact of cryptocurrencies and the need for a regulatory framework to approve new large-scale connections to the grid.
Earlier this month, Hydro-Québec Utilities asked the province’s electricity distribution regulator to suspend energy allocations to the blockchain sector. Manitoba’s restrictions also follow the enforcement of a partial moratorium on proof-of-work mining in New York, USA.
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