Sichuan authorities urge miners to consume excess hydropower

The administration of the Ya'an City District in China's Sichuan Province called on participants in the miningindustry to consume excess hydropower ahead of the summer rainy season.

The province is rich in cheap hydropower. According to various estimates, enterprises are concentrated in Sichuan, which account for more than 50% of Bitcoin's computing power. Recently, the Yaan City Administration issued a public guide and called for “blockchain sector strategic opportunities” to help consume the excess hydropower generated in the province during the rainy season.

Mining companies are not mentioned in the manualdirectly, however, they are the ones that make up the majority of the blockchain and cryptocurrency sector in the region, and consume the most electricity. According to the local daily newspaper, the city administration wants to reach the maximum level of consumption of excess hydroelectricity and turn Yaan into a “powerful blockchain center”.

“Blockchain companies mustcreate enterprises near power plants that have excess capacity and are integrated with the state power grid. Companies using electricity produced privately from power plants without integration with the state power grid should adjust their work in a timely manner, ”the manual says.

The release of this guide follows the change.Chinese government position on bitcoin mining. In November last year, the National Development and Reform Commission of China changed its attitude towards the activities of miners and decided not to completely limit the extraction of crypto assets.

In spring and summer, during the rainy season,Sichuan hydropower plants generate excess electricity, which attracts miners. In May last year, provincial authorities investigated the activities of illegal mining farms, which were created without official permission. In December last year, the Sichuan administration asked mining companies to limit electricity consumption in the dry season.

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