Québec’s blockchain industry

Request for proposals No. A/P 2019-01 for the allocation of a 300-megawatt (MW) block of electricity to customers for cryptographic use applied to blockchains has ended.

Process for allocating the remainder of the 300-MW dedicated bloc

Hydro-Québec has filed a proposal with the Régie de l’énergie regarding the allocation of the remaining capacity in the 300-MW block of electricity dedicated to customers in the blockchain industry. The allocation method and applicable terms and conditions are currently under review by the Régie (Phase 3 – Docket R-4045-2018) [[PDF – in French only], and a hearing on this issue has been held in August 2021.

Electricity rate and conditions of service applicable to new projects

Pending approval by the Régie de l’énergie of the allocation process for the remaining capacity in the 300-MW block of electricity, 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 15.195¢/kWh specified in Rate CB (which was approved by the Régie and took effect April 1, 2021) 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 15.195¢/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 exceeding 50 MW

Hydro‑Québec is not obliged to enter into a contract for any new load of more than 50 MW or to accede to any request to supply an additional load of more than 50 MW. Since it must consult the Ministère de l’Énergie et des Ressources naturelles for all projects exceeding 50 MW, you are required to send your request to the Ministère at chainedeblocs50MW@mern.gouv.qc.ca. The Ministère will contact you to let you know what information it needs to analyze your file.

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.

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 2 hours’ notice prior to the start of any given curtailment period, for a maximum of:

  • 100 hours for the rate year extending from April 1, 2021, to March 31, 2022;
  • 200 hours for the rate year extending from April 1, 2022, to March 31, 2023;
  • 300 hours for the rate year extending from April 1, 2023, to March 31, 2024, and subsequent years.

Recent milestones in the blockchain rate case

Questions?

Please don’t hesitate to write to us at HQblockchain@hydro.qc.ca.

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