Engagement on Cryptocurrency Mining Policy

Electrical Connections for Cryptocurrency Mining

B.C.’s clean, affordable electricity has attracted unprecedented interest from cryptocurrency miners. While BC Hydro welcomes new load and has available energy to use strategically for electric vehicles, heat pumps, clean technology, and industry, the unchecked growth of cryptocurrency mining operations in B.C. could make it more difficult to meet electrification goals in support of CleanBC and keep rates low for customers.

What has been done?

To preserve B.C.’s electricity supply, since December 2022, a temporary suspension of new cryptocurrency mining connections to BC Hydro’s grid had been in effect. This pause gave government and BC Hydro time to engage with B.C. stakeholders and First Nations to develop a permanent framework for any future cryptocurrency mining operations. No new cryptocurrency projects were able to enter the queue or initiate the process of connection with BC Hydro during this suspension period. 

Developing a Permanent Policy Framework

While the suspension was in effect, the Ministry led the development of permanent policy that balances the public’s interest with the commercial interests of BC Hydro and cryptocurrency mining operations.

Engagement Process: Summer and Fall 2023

The Ministry engaged with B.C. First Nations, municipalities, utilities, industry associations, and the cryptocurrency mining industry to seek feedback on the development of a permanent policy regarding cryptocurrency mining connections to B.C.’s electricity system. More than 400 First Nations and stakeholder groups were invited to one of four group discussion sessions, held online between July 12 and July 18, 2023, or one-on-one, to ask questions and share input.

In Spring 2024, the Ministry amended the Utilities Commission Act to provide Cabinet with regulation-making authority regarding the provision of electricity service for cryptocurrency mining. These amendments enabled the implementation of a permanent policy. The Ministry also extended, via the Cryptocurrency Power Regulation, the temporary suspension from an initial 18-month period to a 36-month period to provide additional time for policy development and engagement.

Policy update: Fall 2025

The Ministry, via the Cryptocurrency Power Regulation, permanently relieved BC Hydro of its obligation to serve certain new cryptocurrency operations.  Implementation of a permanent ban is consistent with the Spring 2024 amendments to the Utilities Commission Act, which gave Cabinet the regulation-making authority to indefinitely prohibit the supply of electricity service to cryptocurrency mining.  This ban is also consistent with the Electricity Allocation Framework and preserving electricity resources for projects that provide the greatest benefits to B.C.

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