Chinese blockchain journalist colin Wu (@WuBlockchain) tweeted about Sichuan’s electricity usage for mining activities:
“Sichuan, China, announced that the electricity used for mining in compliance in 2021 will reach 11.3 billion kWh, an increase of more than 150% over last year, and it is expected to increase 10 billion later. Transaction price is $0.02/kWh, an increase of about 16% over 2020.“
The Sichuan Power Trading Center released a comprehensive report regarding the Sichuan power market’s operation in 2020. The information is meant to be a reference for market players.
Sichuan To Face Rise In Price Of Hydropower
The report gives an estimate of the cost to be incurred for the region’s mining activity. The province’s hydropower is not likely to meet the demands as it does not have the required resources.
Wu further adds that this will affect the price of hydropower too:
“When summer arrives, Chinese miners will gather in Sichuan. Due to the Chinese government’s carbon neutral policy restricting thermal power, the price of hydropower in Sichuan will rise, and the current supply of hydropower for mining is in short supply.“
Sichuan To Be The Next Mining Hub
Sichuan has one of the largest concentrations of Bitcoin miners in the world. The region has exceptionally cheap electrical costs, with bitcoin mining enterprises approved to leverage the region’s hydropower cheaply.
The Inner Mongolian province and Xinjiang, known for their coal mines, were criticized by China’s economic planner, the National Development and Reform Commission, for having failed to reduce emissions last year.
Inner Mongolia will be phasing out all crypto mining in the region by this month, leaving miners with the option to shift base to the Sichuan province.
China’s Mining Emissions To Hit 130 Million Tonnes By 2024
Guan Dabo, Distinguished Professor of Climate Change Economics at Tsinghua University in Beijing, released an analysis with his colleagues that suggest the total carbon footprint of bitcoin mining in China will peak in 2024, with a release of 130 million metric tonnes of carbon.
While northern China is dependent on coal power plants, southern regions like Sichuan are powered by hydroelectricity. Given the nation’s commitment to a net-zero carbon goal by 2060, it should be focussing on implementing regulations to reduce carbon emissions at the earliest. With five months of rainfall and many tributaries, Sichuan is ideal for sustainable methods for electricity production.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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