The Alberta Utilities Commission fined an Alberta power generator CAD$240,000 for running a power plant without regulatory approval.
The commission fined Avex Energy for operating a natural gas-fired generator without the appropriate regulatory tests for safe operation.
In the summer of 2019, company officials approached the commission with plans to build a generating station in the County of Stettler. The company had already held permits for operating a natural gas field in that area of central Alberta and planned to use that gas to fuel the plant.
Due to this, the company proceeded with its plans without seeking additional approval and operated the Red Willow power plant. Avex Energy sold the electricity, eventually reaching 3.5 megawatts, to a bitcoin miner. Avex Energy planned to generate up to 10 megawatts.
However, by December 2021, the commission started receiving noise complaints from residents, some living as far as three kilometers away from the plant.
The complaints indicated that residents initially noticed the noise in May 2021, and it became problematic in October 2021, “when the additional generating capacity was added,” according to both reports, citing the agreed statement of facts.
Upon investigating the complaints, the commission discovered that Avex Energy operated without a license. Apart from failing to apply for a license to operate the plant, the company also neglected to conduct a required noise assessment and obtain necessary environmental approvals.
The commission shut down the Red Willow power plant on December 22, 2021. It remains closed.
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Increase of illegal power operations explained by halving preparation
This isn’t the first time this variety of issue has arisen.
In December, the AUC issued an order for a Vancouver company to pay more than $400,000 in penalties and legal expenses due to its operation of multiple unsanctioned cryptocurrency mines in Alberta.
The commission initiated an investigation into Green Block Mining following noise complaints from residents in 10 households near Greystone Manor, a neighbourhood in Sturgeon County, north of Edmonton, regarding a natural gas plant.
The company, previously known as Link Global, had established four 1.25-megawatt gas generators on the site to power computer servers for mining digital currency. Additionally, the AUC discovered that the company operated two other plants—one in southern Alberta’s Special Area 3 and another in Westlock County, north of Edmonton. The commission stated that all three power plants have been shut down since 2021.
This recent ramp-up of illegal power generating operations makes sense given the recent trajectory of Bitcoin leading up to the halving event in two months.
Bitcoin’s three month trajectory shows considerable growth. Image via Coingecko.
The Bitcoin halving is an event that occurs approximately every four years, reducing the reward miners receive for validating transactions on the Bitcoin network by half. This process controls inflation and regulates the supply of new Bitcoins entering circulation.
Historically, Bitcoin’s price has tended to appreciate in the long term following halving events.
This is primarily due to a combination of decreased supply and increased demand dynamics. The halving refers to the process wherein the rate of new Bitcoin creation is cut in half. This reduces the available supply of newly minted coins.
This scarcity, coupled with continued or heightened demand, can create a supply-demand imbalance, potentially driving up the price. Furthermore, halving events often attract media attention and reinforce Bitcoin’s scarcity narrative, attracting new investors and further boosting demand.
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