Canadian Provinces Clamp Down on Crypto Mining Energy Use

In a move that has significant implications for the cryptocurrency mining industry, Canadian provinces Manitoba and British Columbia are implementing measures that limit miners’ access to electricity. Manitoba has extended its moratorium on new electricity connections for crypto mining operations until April 30, 2026. This extension is in anticipation of a long-term strategy to address the “unprecedented demand for electricity” from the crypto sector, which threatens to increase Manitoba’s total electrical load substantially, according to Cointelegraph.

In 2022, Manitoba Hydro’s CEO highlighted the overwhelming interest from miners, which could have escalated the province’s electrical load by 4,600 megawatts, nearly three-quarters of the total capacity of 6,100 megawatts. Meanwhile, British Columbia, after suspending service to new crypto miners for 18 months in December 2022, is introducing legislative amendments that could restrict service to this energy-intensive sector further. 

These moves come as Canadian provinces grapple with balancing the growing demand for energy from cryptocurrency mining operations with the need to provide stable and affordable electricity to all consumers. The legislation in British Columbia is aimed at prioritizing the electricity needs of residents and businesses over the demands of crypto miners, who have been criticized for the sector’s relatively low job creation. As the crypto industry continues to mature, the sustainability of its operations, particularly concerning energy consumption, remains a focal point for regulators and environmentalists alike.