This text is taken from the Courrier de l’économie of December 12, 2022. To subscribe, click here.
On November 3, the Minister of Energy, Pierre Fitzgibbon, announced the swan song of the expansion of the energy-intensive cryptocurrency mining sector in Quebec: “Given the strong demand for energy, the government has asked decree to the Régie de l’énergie to consider withdrawing the 270 MW reserved for blockchain projects. We remain open to projects that will have greater benefits. »
The announcement was made on Twitter — in less than 250 characters — the same day Hydro-Québec released its Supply Plan. This predicts a marked increase in demand for electricity (+14%) over the next ten years. In a document filed the same day with the Régie de l’Énergie, the state corporation asked Quebec to act. It argued that the addition of electricity volumes planned for cryptographic use would exceed 3 TWh from winter 2024: “Ultimately, this would be likely to put the reliability and security of supply at risk. [du réseau de distribution] “.
The reaction from the cryptocurrency mining industry was predictable. And she is currently pleading her case at the Régie de l’énergie. In a document filed on November 21, Bitfarms openly challenges the government decree. The company — whose facilities are in Sherbrooke — maintains that Hydro-Québec “does not have a clear right [et] is not in a position to invoke irreparable harm”.
Similar position from HIVE, a company that operates several data centers around the world, including one in Lachute. Not only does the multinational say that the state corporation “does not have a clear right” to abolish the block planned for this sector, but the company maintains that Hydro-Québec “does not have clean hands”. Reason given: it would be the very behavior of the state company which would be at the origin of “the alleged emergency situation” in connection with the increase in the demand for electricity, she argues.
The two companies invoke the sums they have injected in recent years to set up in Quebec. For example, HIVE claims to have invested $50 million. The decree “threatens the realization of its projects in Quebec and, in general, the future of the industry in the province”, according to her.
However, it is not said that the decree will receive the green light from the Régie de l’énergie. In another clash with the government, the cryptocurrency industry came out on top. It was in June 2018. The Liberal government had, by decree, promised a stricter framework, claiming to want to substantially increase the tariffs intended for the sector.
Then owned by Quebecers, Bitfarms had risen to the front. She had contested the government decree at the Régie de l’énergie. After a few months of arguments, it had proven him right: the rates had not been increased. On the other hand, Hydro-Quebec had had the green light to issue “blocks reserved” for the sector, therefore to mark out the total volume of electricity intended for the industry.