China’s Carbon Neutral Stance Puts Pressure on BTC Miners, Sichuan Electricity to Increase 150% – Mining Bitcoin News
The global bitcoin hashrate plummeted 10 days ago after a coal mine accident caused a major power outage in Xinjiang, China. Initial estimates showed that the hashish had fallen by more than 40%, but average statistics over five days show that the hashish only lost about 25%. At the same time, Sichuan-based Chinese miners may increase the pressure on hydroelectricity as provincial authorities have announced that electricity prices will rise by 150% this year.
Sichuan electricity trading department says electricity prices in the region will rise by 150%
Bitcoin mining is highly competitive, and miners are scattered around the world to get the cheapest possible electricity rates. Because energy costs in China are much lower than in many other parts of the world, most bitcoin miners live in China.
Some time ago it was estimated that more than 65% of hadrat occurred in China, while more recent studies show that the concentration has dropped to about 50% hadrat.
Following the recent surge in Xinjiang province, electricity consumers in Sichuan should expect higher electricity prices, according to a regional report. Priyeshu Garg, a financial columnist, says Sichuan’s electricity consumption will rise 150% this year.
The revelations come from the Sichuan Electricity Trade Department, which announced the increase on 10. April 2021 announced. However, the increase is expected to be felt mainly by non-mining companies using the Sichuan grid, as the authorities seek to reduce reliance on thermal energy from coal mines.
As coal mine capacity increases and coal-fired power plants are decommissioned, demand for hydropower is expected to increase.
China’s carbon neutrality policy aims to reduce dependence on carbon-based energy, which means uneconomic industries will also be forced to use hydroelectricity. Bitcoin miners in Sichuan are already taking advantage of the region’s hydropower and can get about $0.02/kWh.
Priyeshu Garg says Sichuan’s relatively cheap tariff of $0.02/kWh is 16% higher than last year. According to a report by Sichuan’s provincial electricity trading authority, mining companies alone will consume 11.3 billion kWh in 2021.
A regional journalist noted that with the arrival of the rainy season, more bitcoin miners are expected to flock to Sichuan in the near future. This will increase the dependence on all hydropower sources, and if other non-mining companies compete for this type of energy, hydropower may face higher prices.
The Sichuan Provincial Electricity Trade Department notes that there is already a shortage of hydroelectric power.
How about the fact that electricity prices in Sichuan will rise by as much as 150% this year? Let us know what you think in the comments below.
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