The administration of the city district of Yaan in the Chinese province of Sichuan urged participants in the mining industry to consume excess hydroelectric power in the run-up to the summer rainy season.
The province is rich in cheap hydroelectric power. According to various estimates, enterprises that account for more than 50% of Bitcoin’s computing power are concentrated in Sichuan. Recently, the ya’an city district administration issued a public guide and called for using the “strategic capabilities of the blockchain sector” to help consume excess hydroelectric power generated in the province during the rainy season.
Mining companies are not directly mentioned in the guide, but they make up the majority of the blockchain and cryptocurrency sector in the region, and consume the most electricity. According to a local daily newspaper, the city administration wants to reach the maximum level of excess hydroelectric power consumption and turn ya’an into a “powerful blockchain center”.
“Companies working in the field of blockchain should create enterprises near power plants that have excess capacity and are integrated with the state power grid. Companies that use electricity produced privately from power plants without integration with the state power grid should adjust their work in a timely manner,” the guide says.
The release of this guide follows a change in the position of the Chinese government regarding bitcoin mining. In November last year, the national development and reform Commission of China changed its attitude to the activities of miners and decided not to completely restrict the production of crypto assets.
In the spring and summer, during the rainy season, hydroelectric power stations in Sichuan generate excess electricity, which attracts miners. In may last year, the provincial authorities investigated the activities of illegal mining farms that were created without official permission. Last December, the Sichuan administration asked mining companies to limit their electricity consumption during the dry season.