The regulation on cryptocurrency power aims to establish clear definitions and restrictions concerning new cryptocurrency projects that require significant electric supply. Guided by the Utilities Commission Act, it outlines specific criteria under which the authority can interact with these projects.

Key terms relevant to cryptocurrency projects are introduced in the regulation. The term “Act” refers to the Utilities Commission Act. A “Design Deposit” is a payment made to the authority covering part or all of the estimated costs for necessary upgrades to the electric distribution system to connect a cryptocurrency project. A “Facilities Study Agreement” is a contractual arrangement between the authority and the project proponent to evaluate the requirements for connecting a project to the authority’s transmission system. This agreement involves engagement with First Nations and includes aspects of engineering, procurement, and construction. A “New High-Voltage Cryptocurrency Project” is defined as a mining project that requires an electricity supply of 60 kV or higher, with no facilities study agreement signed prior to December 28, 2022. Conversely, a “New Low-Voltage Cryptocurrency Project” is a project requesting at least 2.5 megawatts of power through a 12.5 kV connection or at least 5 megawatts through a 25 kV connection, with no design deposit received before December 28, 2022. A “Paused Project” refers to a new high-voltage cryptocurrency project linked to specific system impact study agreements dated between December 1, 2021, and June 20, 2022. Finally, a “System Impact Study Agreement” evaluates how connecting a project to the authority’s transmission system affects the system and identifies necessary modifications to ensure reliability.

To manage the potential impact of cryptocurrency projects on the electrical grid, the regulation enforces a prohibition on the authority supplying services for new cryptocurrency projects during the initial 18 months following the regulation’s implementation. Specifically, the authority is barred from supplying services for new low-voltage cryptocurrency projects, which includes any engagement or acceptance of a design deposit related to these projects. This prohibition also extends to new high-voltage cryptocurrency projects, preventing the authority from entering into system impact study agreements or facilities study agreements concerning paused projects.

The primary objective of these restrictions is to safeguard the stability and reliability of the electrical grid in light of the rapidly increasing demand for power from cryptocurrency mining operations. By pausing the approval of new projects, the authority can assess and evaluate the existing infrastructure’s capability to handle additional load, particularly given that cryptocurrency mining can be an energy-intensive process.

By restricting the authority’s ability to engage with new projects during the initial regulatory period, the regulation emphasizes the need for careful planning and evaluation in the face of rapidly evolving energy demands from the cryptocurrency sector.

British Columbia (163/2024) June 28, 2024