The Manitoba government is temporarily halting any new connections of cryptocurrency operations to the hydroelectric grid, citing a potential for overwhelming energy demands and low economic return.
The 18-month pause will not affect the 37 current operations in the province, but will temporarily halt a growing number of requests from operators who have the capacity to consume a sizable portion of the province’s electricity supply.
Read more: Manitoba government reintroduces bill to ease liquor rules, aims to change pot tax Read next: ‘We kind of missed the landing’: Alberta premier on awkward handshake with prime minister “We can’t simply say, ‘Well anyone can take whatever (energy) they want to take and we’ll simply build dams,'” Finance Minister Cameron Friesen, the minister responsible for Crown-owned Manitoba Hydro, said Monday. “The last one cost $13 billion if you priced in the (transmission) line.” The technology that underpins cryptocurrencies — blockchain– requires a large amount of electricity to run complex financial transactions.
Manitoba is an attractive place for high-energy users, as it has traditionally had the second-lowest electricity rates in Canada, behind Quebec.