Quebec Electricity Utility Slammed With Requests From Cryptocurrency Miners

Quebec Electricity Utility Slammed With Requests From Cryptocurrency Miners

Be careful what you wish for. Hydro-Quebec, Canadas largest electric utility, which has been courting cryptocurrency companies with its low cost, renewable energy, has been deluged with requests to supply electricity to cryptocurrency miners looking to set up shop in Quebec, creating a demand that exceeds what the utility can deliver.

Eric Martel, CEO of the Montreal based utility, has received hundreds of applications in the past few weeks, according to Bloomberg.The ventures will require more than 9,000 megawatts of energy, which is equal to a quarter of the utilitys total generating capacity of 37,000 megawatts. Last month, the company reported it was negotiating with more than 30 cryptocurrency companies. Martel said he has been corresponding on LinkedIn with people from China, Russia and many other places. He said his phone has been ringing off the hook.

Utility Courted Crypto Miners

Hydro-Quebec has been courting cryptocurrency miners in recent months in an effort to soak up surplus energy from dams in northern Quebec. Quebecs power rates are the lowest in North America, for both consumers and industrial customers.

It will take the company several months to review the requests, and it will most likely not be able to meet all the requests. There are no plans to build more hydropower plants.

Martel is considering charging bitcoin miners more than the rate of about 5 Canadian cents (3.91 U.S. cents) per kilowatt-hour that t normally charges industrial users such as data centers.

Martel said his first priority will be to make sure bitcoin miners do not endanger the supply of power to the residents and industrial users who depend on the utility.

Also read: As Canada scrutinizes ICOs, Quebecs cheap power is helping bitcoin miners

Other Industries Sought

In addition to cryptocurrency companies, Hydro-Quebec is seeking to broaden its industrial base by targeting data centers. Amazon.com Inc. and Alphabet Inc.s Google both have data centers in Montreal.

The provinces more than 40 data centers use about 350 megawatts of power. By 2020, that number could reach around 1,000 megawatts, Martel said.

The province has land available and its energy is 99% renewable, Martel said. The fact that the energy is renewable benefits a companys branding, he noted.

Featured image from Shutterstock.

05.03.2018 / 13:20 16
MoonLite  A Timely Disruption of the Crippled Crypto Mining Model MoonLite A Timely Disruption of the
Cryptocurrency mining operations have come a long way since the early days when bitcoin first came into the scene. When Satoshi Nakamoto launched the
Bitfarms to Raise Up to CAD$50m to Scale Cryptocurrency Mining Operation Bitfarms to Raise Up to CAD$50m to
Canada seems to have become the hottest destination for bitcoin miners from all over the world thanks to a combination of cheap renewable
VC Investments In Blockchain Companies On Track To Exceed 2017s Numbers VC Investments In Blockchain Companies
Venture capital fundraising for Blockchain companies is set to exceed that of last year, having already reached 40 percent of 2017s numbers in just
Chile Adopts Blockchain Technology For National Energy Grid Chile Adopts Blockchain Technology For
Chilean energy grid to adopt blockchain, security cited as the reason for the development. The Chilean energy regulatory agency, the Comision
Icelandic Police Are Hunting for Hundreds of Bitcoin Miners Icelandic Police Are Hunting for
The theft of hundreds of cryptocurrency miners in Iceland has led to a series of arrests amid an ongoing investigation. The Associated Press reports
The Fundamental Principles of Utility Tokens in the Blockchain Ecosystem The Fundamental Principles of Utility
Tokenization is an aspect of blockchain technology that is enabling the effective transfer of value across the internet. The fluidity and liquidity
Comments (0)
Add a comment
Comment on