Hydro-Quebec Moves Forward through Cryptomining, Blockchain, and Supply-Related Challenges

Hydro-Quebec provides electricity to the entire province of Quebec. In recent months, blockchain and cryptomining companies have exhausted the provider's capacity. Demand for electricity from such companies continues to explode, and Hydro-Quebec cannot maintain pace. The energy provider released a notice on June 7, noting that it would stop processing energy requests from cryptocurrency-related operations. Capacity Issues Force The Quebec Government To Step In Fortunately, this move is temporary and opens the door for better relations with cryptocurrency operations. Hydro-Quebec noted that it cannot handle short- or medium-term demand for electricity. Cutting off cryptomining operations means the energy provider can ensure electricity availability throughout the rest of Quebec. For the time being, existing companies with Hydro-Quebec contracts don't have to worry. Setting Up A New Framework To Deal With Crypto-Related Operations In the same press release, Hydro-Quebec mentioned its interest in blockchain-related projects. The provider will petition the energy regulator in the area for a selection process to choose worthwhile projects and operations. Such a move would allow Hydro-Quebec to provide electricity to projects that benefit Quebec as a whole. According to the energy provider, projects that provide economic benefits would be prioritized. A Potential Long-Term Solution For Quebec All of Quebec stands to benefit from certain blockchain-related operations. Hydro-Quebec doesn't want to miss out on such opportunities. If a given operation brings new jobs or economic buffs to Quebec, then Hydro-Quebec wants to fuel that project. On the other hand, the energy provider doesn't want to give away essentially free energy. It only makes sense the company wants to profit as blockchain projects thrive. There's no reason Hydro-Quebec should provide the energy and see no benefit here. Due to excellent energy rates, cryptomining and blockchain companies have flocked to the province of Quebec. For better or worse, such operations draw a disproportionate amount of electricity from the grid compared to everyone else. Hydro-Quebec needs to figure out a plan that maintains ample capacity for everyone without shutting out blockchain companies altogether. Finding the perfect balance in this situation may prove difficult but could provide a framework for other areas in the process.