Sichuan's first batch of "hydropower consumption demonstration enterprises" announced, including several Bitcoin mining companies

Wu Blockchain learned that Sichuan recently announced the first batch of "Hydropower Consumption Demonstration Enterprises". Among the 99 companies that entered, there are several mining farms, including Xiaojin County Kodi Big Data Storage Technology Co., Ltd., Blackwater Kodi Big Data Technology Co., Ltd., Malkang Kodi Technology Co., Ltd., Kangding Zhitong Interchain Technology Co., Ltd., Chengdu Wuji Chain Technology Co., Ltd. Kangding Branch, etc.

Wu said blockchain has disclosed that the People's Government of Ya'an City, Sichuan Province has recently officially issued the "Implementation Opinions on Building a Hydropower Consumption Demonstration Zone to Support the Development of the Blockchain Industry". Sources pointed out that this may be the first time in 18 years that a local government has issued a document to support mining during the flood season, which is very rare. There are also reports that more areas in Sichuan may be opened one after another.

Ya'an is one of the top ten hydropower bases in China, with a total installed capacity of 12.72 million kilowatts, and abandoned water and electricity account for one-third of the entire Sichuan province. Official information shows that since the official issuance of the "Opinion" on March 30, it has received electricity applications from three blockchain companies, with a total application capacity of 366,000 kilowatts. It is expected that the three companies will be put into operation by the end of May at the earliest, and the additional electricity consumption during the flood season will be more than 700 million kilowatt-hours.

Ganzi Prefecture also recently held the highest-level "Blockchain Industry Development Seminar" to strongly support "crypto mining", increase policy support in electricity, finance, taxation, financial services, etc., and define it as a "green emerging industry" that can make up for the economic losses caused by the epidemic.

Official news shows that Kangding Guorong Technology Co., Ltd., an enterprise settled in the Ganzi Prefecture Hydropower Consumption Industry Demonstration Zone, resumed work on May 14. Guorong Technology's Xinduqiao Cloud Computing Center project started construction in November 2019 with a total investment of 200 million yuan and a power load of 300,000 kilowatts.

In August 2019, the General Office of the Sichuan Provincial Government issued the "Implementation Plan for the Construction of Hydropower Consumption Industry Demonstration Zones in Sichuan Province", which determined that six cities and prefectures, including Ganzi, Panzhihua, Ya'an, Leshan, Liangshan, and Aba, would carry out pilot projects for hydropower consumption industry demonstration zones. These areas are remote and have poor transportation. It is almost impossible for heavy industries with large electricity consumption to invest in the area. The only ones that actually consume electricity are mining companies.

The Implementation Plan provides two electricity price calculation methods for power users to choose from. One method is the annual comprehensive electricity price, where the transaction price is negotiated and determined by power users and power generation companies at a level not higher than 0.22 yuan per kilowatt-hour, and the transmission and distribution price is implemented at a single system of 0.105 yuan per kilowatt-hour. The other is to calculate based on the abandoned hydropower electricity price, which refers to the electricity price formation method when power users only use abandoned hydropower from May to October.