Canadian Hydro Power Supplier Considers Charging Higher Rates to Cryptomining Firms
The increased demand for low-cost hydroelectric power in Montreal for cryptomining could generate higher rates of electricity. Hydro-Quebec has revealed that it would be possible to raise the price of electricity for bitcoin miners, given the accumulated demand in the region, which would frustrate crypto miners that depend on low electricity rates to power their operations.
The province has been flooded with requests from numerous cryptomining operations seeking to set up industries there.”We have had such a large volume of requests that questions are asked about the price offered and the number of customers that we will be able to connect,” a Hydro-Quebec spokesman told CTV News Montreal.
At the moment, Hydro-Quebec has enough electricity, but this surplus could be reduced if more bitcoin miners move to the city. Many proposed bitcoin mining projects can reach a capacity of 100 mW, which is much more energy consumed by the city locals.
In other to avert such phenomenon, Hydro-Quebec is looking to charge higher rates for cryptomining overtaxing capacity.
The co-founder of the Bitfarm, one of the largest cryptomining firm in Quebec, regretted a possible increase in fees, saying in a statement:
“We are building the computing power and electrical infrastructure that will feed blockchain with hydro Quebec power,” said Pierre-Luc Quimper, taking into account the dozens of jobs that the company presented in the region. According to their Twitter page, Bitfarm plans to hire hundreds more for positions as analyst, technician, engineer and developer.
Montreal is conducive to bitcoin mining not only for its cheap hydroelectric power but also for its sub-zero temperatures. The cold weather helps to maintain efficient computer systems in the field of bitcoin exploitation 24 hours a day and consumes a lot of energy.
In recent times, Cryptomining and blockchain has flooded the North American region, as the Chinese loses its top spot due to its stern regulations on bitcoin mining.
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