The Canadian province of Manitoba has decided to extend its moratorium on new requests for cryptocurrency-operated electricity services provided by the government-owned Manitoba Hydro. Similarly, British Columbia (BC) has implemented comparable suspensions and has opted for an alternative yet equally stringent approach.
Manitoba's extended moratorium pertains to fresh requests from crypto miners and "requests for electric service that have not yet resulted in the execution of an infrastructure construction agreement." Initially suspended in November 2022 for 18 months, the prohibition on electricity connections for crypto mining operations will now persist until April 30, 2026. The province aims to devise long-term solutions by then to address the unprecedented surge in electricity demand expected from new or expanding cryptocurrency ventures.
According to Manitoba Hydro, the anticipated surge in electricity demand from cryptocurrency operations could substantially escalate the total electricity load. Former Manitoba Hydro CEO Jay Grewal underscored this concern in 2022, stating that connecting all prospective cryptocurrency operators expressed interest over a 16-month period would result in a staggering 4,600-megawatt increase in power load, surpassing the organization's total capacity at that time of 6,100 megawatts.
Several other Canadian provinces have also taken measures to address the energy demands associated with cryptocurrency mining. Hydro-Québec proposed a temporary reduction in electricity supply to crypto operations in November 2022, while New Brunswick prohibited electricity supply to new crypto businesses in November 2023. In December 2022, British Columbia announced a temporary halt in connecting new cryptocurrency miners for 18 months, impacting 21 projects.
The British Columbia provincial government subsequently amended its Public Utilities Commission Act on April 11 to regulate electricity services for cryptocurrency miners. Provincial Energy Minister Josie Osborne emphasized the importance of ensuring sufficient power for essential needs while regulating power service to energy-intensive cryptocurrency miners, who contribute minimally to local job creation. These amendments empower the BC government to impose bans, restrictions, or regulations on services provided to cryptocurrency miners, in light of British Columbia's relatively low commercial and industrial electricity prices in North America.
