TLDR
- BC to ban new crypto mining hydro connections starting fall 2025.
- Government cites high energy use and low economic return for crypto.
- BC Hydro says rising demand requires protecting grid reliability.
- Analysts argue mining can support renewable and grid stability goals.
The government of British Columbia is preparing to impose a permanent ban on new cryptocurrency mining connections to its hydroelectric power grid. The measure, set to take effect in fall 2025, aims to manage growing electricity demand as the province prioritizes clean, affordable, and reliable energy for traditional industries and emerging sectors such as artificial intelligence (AI) and data centers.
New Legislation to Manage Electricity Demand
On Monday, the British Columbia government announced new energy legislation designed to strike a balance between power availability and economic growth. The provincial government stated that the move would enable BC Hydro, the state-owned utility provider, to handle increasing electricity demands from both traditional and emerging industries.
“There are significant opportunities in British Columbia’s traditional natural resource sectors, including mining, natural gas and LNG, and in emerging sectors, such as data centers and artificial intelligence (AI),” the government stated. “The success of proposed major projects hinges on access to reliable, clean electricity at a competitive industrial rate.”
Under the new framework, limits will be placed on electricity available for AI and data centers, while crypto mining operations will face a complete ban on new connections to the BC Hydro grid.
BC Hydro to Prioritize Grid Stability
BC Hydro, which supplies power to more than five million people, about 95% of British Columbia’s population will be responsible for implementing the new measures. The utility said the changes are necessary to ensure long-term energy stability and equitable distribution across all sectors.
“We’re seeing unprecedented demand from traditional and emerging industries,” said BC Hydro President and CEO Charlotte Mitha. “The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable.”
Officials said the updated policy would enable BC Hydro to focus its capacity on industries that create sustainable jobs and offer wider economic value. This approach aligns with the government’s strategy to support sectors that can operate efficiently within environmental goals.
Differing Outlook for Crypto Mining and AI
While the government maintained a supportive stance toward AI and data centers, it described cryptocurrency mining as offering limited economic benefit relative to its energy consumption. The background information in the announcement said that crypto mining requires “disproportionate energy consumption and limited economic benefit,” leading to the decision to restrict the sector’s access to new power sources.
In contrast, AI and data center operators will continue to receive support through carefully managed connections, as the government sees these industries as drivers of technological growth and innovation. The province said it aims to promote these sectors in a way that “results in the greatest benefit to people in British Columbia.”
Industry Response and Ongoing Debate
The move has sparked renewed debate within the cryptocurrency industry, where some analysts argue that banning new mining connections is not an effective long-term approach. Industry advocates maintain that mining operations can coexist with energy transition goals when managed responsibly.
Bitcoin environmental researcher Daniel Batten and others have campaigned to change public perceptions about crypto mining. They argue that mining can be integrated into renewable energy strategies, including projects that stabilize power grids and reduce emissions.
The new ban adds British Columbia to a growing list of jurisdictions reevaluating the role of cryptocurrency mining in their energy policies. As demand for power rises, the province is choosing to prioritize industries it believes will deliver the most balanced benefits for its economy and residents.
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