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The process of creating new cryptocurrencies is called Crypto Mining that uses electrical energy and its high energy consumption has now consequently brought electrical power shortages in several regimes due to highly increased mining activities.
Quebec, a Canadian Province, released a request for approval of the Distributors’s 2023-2032 Supply Plan as it is facing an electrical power shortage problem. Hydro Quebec is a Power Managing firm which recently filed a report on November 01, 2022.
Filed Request
Undersigned by Nadhem Idoudi, Senior Director Integrated Planning and Development of Business Strategies at Hydro-Québec, at 75, boul. René-Lévesque O., in the city of Montreal, Province of Quebec, solemnly affirms the that-
The application by Hydro-Québec in its distribution activities of electricity (the Distributor) has been prepared in part under his supervision and his control, he employed by Hydro-Québec since 2004 and holds the position of Senior Director Integrated Planning and Development of Business Strategies, and this, since 2022.
Nadhem Idoudi added that during the preparation of the 2023-2032 Procurement Plan, he participated in the analysis of the situation of the supply-demand balance in energy and power of the Distributor, in particular for the purpose of establishing the planning of supplies.
He then saw in its planning under normal climatic conditions, the Distributor considers then additional purchases planned beyond 3 TWh in the winter period which represents a significant volume, and sufficient to require a long-term supply.
In its decision D-2022-062, rendered on May 19, 2022, the Régie considers that the Distributor’s strategy for using short-term markets contributes adequately to manage the vagaries of energy demand.
As appears from the energy report presented in exhibit HQD-2, document 3, the additional energy needs in winter are high, without the addition of charge related to the balance of the block reserved for cryptographic use applied to Blockchains (the Reserved Block). There are anticipated energy purchases of nearly 3 TWh in winter from 2025 and even exceeding 3 TWh in 2027.
Any significant additional charge added to the forecast of the needs in energy linked to the balance of the Reserved Block would therefore result in pressure additional on the volumes of additional energy to be acquired. The Distributor is of the opinion that it is important to limit, to the extent possible, the risk of this happening.
The addition of the entire remaining balance of the Reserved Block, of the order of 270 MW would have an impact on the needs of about 2.2 TWh annually, and about 700 GWh in winter.
The significant reduction in the quantities of energy for this category of customers would limit the impact of this clientele on Hydro-Québec’s energy balance and would help maintain the energy balance.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
