Québec’s blockchain industry

Allocation of the block of electricity dedicated to cryptographic use

In light of the new energy context, Hydro-Québec has asked Québec’s Régie de l’énergie [energy board] to approve suspension of the process for allocating capacity dedicated to cryptographic use applied to blockchains while its request concerning the reassessment of the number of megawatts involved is being processed. The Régie gave its approval in a decision issued on January 10, 2023 [in French only]. To track progress on this file, please consult the related documents on the Régie de l’énergie website [In French only].

Electricity rate and conditions of service applicable to new projects

Any new project related to the utilization of at least 50 kilowatts (kW) of installed capacity for cryptographic use applied to blockchains will be subject to the price of 16.603¢/kWh specified in Rate CB with regard to energy consumption, and this price will apply to all the energy consumed under the service contract.

If you wish to connect an electrical installation for this usage under the Electricity Rates and Conditions of Service currently in effect, you can make a connection request via a master electrician. Before submitting your request, however, you must send us an email at HQchainesdeblocs-declaration@hydroquebec.com. Your email must contain the following:

1. your acceptance of the terms and conditions set forth in the Electricity Rates and Conditions of Service regarding cryptographic use applied to blockchains, including the price of 16.603¢/kWh applicable to all the energy consumed under the service contract, as well as the fact that the service is provided on a non-firm basis and that your company must assume the entire cost of the work required to make the connection;

2. the name of the company;

3. the name, job title, telephone number and email address of the authorized representative;

4. the Régie du bâtiment du Québec (RBQ) permit number, if applicable.

Projects of 5 MW or more

On February 15, 2023, Québec’s National Assembly passed An Act mainly to cap the indexation rate for Hydro-Québec domestic distribution rate prices and to further regulate the obligation to distribute electricity. Projects subject to the Act, namely those involving 5 MW or more of capacity, must now be authorized by the Minister of Economy, Innovation and Energy before the electrical installations in question can be connected to Hydro-Québec’s grid or to that of another holder of exclusive rights to distribute electricity.

If you’re planning to carry out a new project involving 5 MW or more of capacity or to add 5 MW or more of capacity to an existing installation, we therefore recommend that you consult the process for submitting authorization requests described on the Ministère de l’Économie, de l’Innovation et de l’Énergie’s website.

Cost of work required to fulfill connection request

For a connection request involving an electrical installation where at least 50 kW of installed capacity will be dedicated to cryptographic use applied to blockchains, you must assume the entire cost of the work required to make the connection. Note that none of the work is included in basic service and that payment in full must be received before Hydro‑Québec begins the work. Moreover, no allowance will be applied to reduce the amount, nor is there any refund, as provided for in Section 10.4 of the Conditions of Service, for addition of a new electrical installation of this type on a distribution line.

• For more information, see Section 9.7.7 of Chapter 9, Section 10.4 of Chapter 10, and Section 19.1.3 of Chapter 19 of the Conditions of Service [PDF 1.56 MB]

Curtailment periods

Hydro‑Québec may curtail the real power demand under the contract to 5% of the highest value recorded in the 12 previous months ending at the end of the consumption period in question. It may do so on two hours’ notice prior to the start of any given curtailment period, for a maximum of 300 hours for the rate year.

• To learn more about Rate CB and curtailment periods, see Section 1 of Chapter 7 of the Electricity Rates [PDF 1.56 MB]