British Columbia Blocks New Crypto Mining Projects to Protect Clean Energy Supply

Highlights:

• British Columbia has banned new crypto mining projects to secure electricity for industries that create more jobs.
• The province will redirect clean power toward AI manufacturing and hydrogen production.
• The ban aims to protect its hydroelectric supply and support long-term economic stability.

British Columbia has announced a permanent ban on new cryptocurrency mining projects. The province said BC Hydro, its government-owned power utility, will no longer accept new grid connection requests from crypto mining companies.

Officials confirmed that the policy will replace the temporary moratorium introduced in 2022. They said the permanent rule aims to protect electricity supplies and prevent pressure on the province’s power grid. The decision also seeks to ensure that clean hydroelectric power supports industries that generate more jobs and income for local communities.

The Ministry of Energy and Climate Solutions said crypto mining consumes large amounts of power but contributes little to public revenue. Therefore, the province plans to redirect available electricity to sectors with stronger employment and investment potential. Those include hydrogen production, natural gas processing, and manufacturing.

Pending mining proposals would have required more than 11,700 gigawatt-hours of power each year. That amount could power hundreds of thousands of homes across the province. The ministry said such demand could affect grid stability and reduce electricity access for households and essential industries.

Province Prioritizes Power for High-Value Industries and Job Growth

The permanent restriction is part of a broader energy reform program planned for late 2025. These reforms will guide how industrial electricity is distributed across British Columbia. They will also define new rules for emerging high-consumption sectors, including artificial intelligence and data centers.

BC Hydro will begin a competitive bidding process to allocate 400 megawatts of power in early next year. Out of that, 300 megawatts will be used in AI projects and 100 megawatts in data centers. This will be done over a period of two years with fair distribution of energy among applicants.

Traditional industries like mining, forestry, manufacturing, and oil and gas will have no limit to access to industrial power. Officials said construction on new transmission lines will begin in 2026 and continue until 2034. These projects aim to expand the grid and meet rising energy demand from growing industries.

Adrian Dix, Minister of Energy and Climate Solutions, said the policy will protect the province’s clean electricity from overuse. He said the new allocation framework ensures energy supports projects that deliver economic and social value. “Our new approach will make sure our clean energy benefits British Columbians while creating sustainable jobs,” Dix said. Norway is also preparing to restrict new crypto mining centers starting in fall 2025. Officials there plan to prioritize power for industries that create more local economic benefits.

BC’s Decision Mirrors Global Shift from Crypto Mining to AI Power Demand

British Columbia’s action follows similar steps in provinces like Manitoba and Quebec. The two jurisdictions limited the use of crypto electricity to avoid energy shortages and encourage the distribution of cleaner power.

The 2022 initial moratorium followed the increase in crypto mining in British Columbia. It attracted many miners with its cheap and renewable hydroelectricity. However, officials said crypto mining offered few jobs and limited local investment despite its heavy energy use. In Abu Dhabi, the Agriculture and Food Safety Authority prohibited crypto mining on agricultural land. Violators will be fined AED100,000 and may lose power supply and municipal services.

In the United States, New York State Senator Liz Krueger introduced a bill to tax crypto mining based on electricity consumption. That plan would apply to miners with annual consumption exceeding 2.25 million kilowatt-hours. Premier David Eby said the province now focuses on industries that create sustainable employment and strengthen economic growth. He said the new framework supports industrial growth while ensuring responsible power use.

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