Hydro-Québec goes on the offensive by turning to the courts to suspend a decision by the Régie de l’énergie which requires it to provide a large volume of electricity to a cryptographic mining company in Gaspésie that it refuses to plug in for almost a year.
According to Hydro-Québec, the Régie de l’énergie “exceeded its jurisdiction” by forcing it to connect a cryptocurrency mining project in Gaspésie. The Régie can only resolve complaints relating to rates or certain conditions of service, believes the state-owned company.
In a decision rendered in mid-September, the Régie de l’énergie ordered Hydro-Québec to supply 20 MW of electricity – the equivalent of 10,000 residences – to Énergie Flumen, a Quebec company that is planning a cryptomining in Matane.
The Régie judges that Hydro-Québec cannot refuse to serve Flumen when the latter meets the prescribed conditions. She specifies that the connection request was made as part of an energy block that Hydro-Québec must allocate to cryptographic uses.
Flumen filed a complaint with the administrative court after Hydro-Québec decided in December 2023 to “suspend the signing of the supply agreement”. The state company cites the difficult energy context for not proceeding with the connection.
Hydro-Québec is now asking the Superior Court to suspend the obligation to connect the company. The connection “will have the effect of allocating to a cryptocurrency company a total power block of 17.5 megawatts” while Quebec must meet “energy challenges” in terms of supply, the company advances in its approach.
Framework for the use of cryptomining
- 2018: A Hydro-Québec study notes that the cryptocurrency mining sector generates few jobs.
- 2019: Hydro-Québec tightens the framework and grants a 300 MW block for cryptographic use. Five applications totaling approximately 30 MW are accepted.
- 2021: the Régie de l’énergie obliges Hydro-Québec to allocate the balance of the block (approximately 270 MW).
- 2022: by decree, the government limits in November the allocation of additional power for industry.