Quebec will make money from miners

Quebec is lifting a moratorium on the registration of new mining operations, but changes cap rules and increases the cost of electricity for crypto mining.

More recently, Canada has become a popular destination for Bitcoin miners thanks to its combination of cheap, renewable hydroelectricity and hospitable cold weather. The province of Quebec, where 40% of Canada’s total water potential is concentrated, has declared itself a Klondike for energy-dependent miners since the beginning of the year and offered a favorable tariff schedule for large consumers. The state-owned electricity producer, Hydro Quebec, was so successful in advertising new opportunities for miners that it had to impose a moratorium on accepting new applications in March. The company published an official document explaining the impossibility of meeting the energy needs of all mining projects.

Last week, provincial authorities announced the development of new rules for mining companies, in accordance with which projects will now open in the region. In addition, Hydro Quebec is asking the provincial energy board to introduce new, higher tariffs in order to “maximize revenue for the energy producer,” in other words, to capitalize on demand. 

Thus, the authorities are lifting the moratorium on the sale of electricity for the extraction of virtual currencies, so as not to miss out on profits from the fast-growing market. In fact, such a decision violates the terms of cooperation previously proposed to the miners. When Quebec opened its crypto paradise, a key selling point was the long-term provision of low tariffs, without the risk of a sharp increase in rates. Now, due to the commercial interests of the provincial authorities, this position will be revised and tariffs will be increased. Whether this will affect all companies or only newly launched projects has not yet been clarified. 

In any case, the development of events looks like a well-planned plan to enrich the electricity supply company. First, the company attracted miners with very favorable conditions, then it announced rush demand and the impossibility of meeting the needs of all new projects, and now it has found resources, but at a higher price. 

Despite the not very beautiful scheme, miners have no other choice.. Mining is an extremely energy-intensive process, and although the release of updated equipment slightly reduces the energy consumption of mining farms, their number is constantly growing. Therefore, miners are looking for a more profitable jurisdiction for their projects and Quebec still looks attractive.