Power Network Discontinued, Crypto Mining Company Stops Mining Operations

Crypto mining. (Photo; Doc. Miningsky)

JAKARTA Manitoba is one of the provinces in Canada that is the country's leading crypto mining site. Recently the local government decided to stop the power grid supplying the mining center.

The Manitoba government has implemented that the move is aimed at anticipating increased energy demand that may not be fulfilled. According to the Toronto Star report, the temporary suspension will take effect within 18 months.

They claim the action will not affect 37 mining operations that are still active. Manitoba intends to regulate a surge in new mining facilities in the region. This means they need a larger energy supply, as so far miners are operating there using provincial electricity supplies.

Cameron Friesen, Finance Minister of Manitoba, as the government official in charge of state-owned company Manitoba Hydro, natural gas power plant and utility in Canada's Manitoba province. He also commented on the policy.

"We can't just say, 'Anyone can take [energy] whatever they want to take and we'll just build a dam. The latter costs $13 billion if you count the price on the [transmission] line, said Friesen, reported by Bitcoin.com News.

Manitoba has become the attraction of various digital asset mining companies that want to operate its crypto mining facilities there. The reason is, electricity rates in Manitoba are the second-lowest in Canada after Quebec. Manitoba is a magnet for users who need large amounts of electricity such as those involved in the extraction of cryptocurrencies that consume great energy.

Cameron Friesen recently stated that there were 17 crypto mining operators that submitted requests to authorities in the province for a total of 370 megawatts of electricity. That exceeds half of the power generated by the Keeyask hydroelectric station which will start operating in 2022.

Minister of Finance Manitoba also highlighted the government's Progressive Conservative concern that the blockchain business may not create much work. "You can take advantage of hundreds of megawatts and have a handful of workers," he explained.

"Manitoba Hydro cannot make discretionary decisions about who will be linked," Friesen stressed. A government review is expected to analyze the economic impact of cryptocurrencies and the need for a regulatory framework to approve a new major connection to the power grid.

Earlier this month, Hydro-Quiebec's public utility asked electricity distribution regulators in its province to suspend energy allocations for the blockchain sector. Manitoba's restrictions also follow the implementation of a partial moratorium on proof-of-work mining in the state of New York, USA.