A provincial supreme court judge found that B.C. Hydro, the province’s power company, was justified in placing a moratorium on cryptocurrency mining operations. The decision was published online on Monday.
A forestry company called Conifex Timber, which had ventured into cryptocurrency mining, was contesting the embargo. Conifex and the native Tsay Keh Dene Nation were organising a mining venture.
Judge Michael Tammen ruled that the moratorium, which was initially implemented in December 2022, was fair, nondiscriminatory, and within the parameters established by the Utilities Commission Act of the province.
B.C. Hydro’s ban, according to Justice Tammen, was based on the cost-of-service model, which takes into account the special and significant energy requirements of cryptocurrency mining while also attempting to maintain accessible and reasonably priced energy for the general public. “The evidence clearly shows that mining operations for cryptocurrencies have distinct electricity consumption patterns… The total megawatt hours needed to support all of the requests for interconnection from cryptocurrency operations in 2023 far exceeded BC Hydro’s projections,” the judge wrote.
Conifex, for its part, stated emphatically that it thought the province was losing out on this ongoing restriction.
In a recent press release, Conifex stated, “We continue to feel that the province government is passing up numerous opportunities to enhance energy affordability, spur technological innovation, fortify the dependability and resilience of British Columbia’s power distribution grid, and accomplish more equitable economic growth.”
New York State put a two-year ban on cryptocurrency mining in November 2022.
Many off-grid, zero-carbon mining operations may be found in British Columbia. One such project is Ocean Falls Technology, which uses the surplus electricity from a hydroelectric plant located in a former mining town.