The Status of China’s Hydroelectric Plants Linked to the Country’s Cryptocurrency crackdown
The State of China Hydroelectric Plants: Small hydroelectric plants have been put up for sale in China as the demand for their cheap energy plummets as a number of Bitcoin mining hubs close. Just like mining platforms, their prices go down, leaving owners little chance of recovering their investment.
Chinese hydropower plants are being sold amid a crypto penetration.
Hydroelectric Plant Status in China – For sale in Xianyu Market
Advertisements for small hydropower plants were recently posted on the Xianyu online marketplace, the South China Morning Post reported. Older systems are available with an output of around 50 megawatts. The number of such proposals has increased dramatically since the government’s attack on cryptocurrency miners began in May.
Daily vendors have confirmed the power plants are up for sale because of the crackdown on mining, and one owner noted their prices have come down. Another seller who appears to be trying to convince potential buyers said:
“You can secretly mine cryptocurrency when you buy a hydropower plant.”
Some of the factories on offer are located in Sichuan Province, China, where local authorities reportedly ordered more than two dozen crypto facilities to cease operations earlier this month. The area is rich in water and offers cheap electricity. Local governments have historically promoted a symbiotic relationship between bitcoin miners and hydropower plants.
The Status of China’s Hydropower Plants – Small hydropower plants are turning to cryptocurrency mining
Low-powered hydropower plants have spread to other water-rich regions, with local government receiving both private and public support. Factories have helped electrify remote rural areas in China, where they help save energy, control floods and alleviate poverty.
An example of this cooperation is the Yangtze River Economic Belt, which includes nine Chinese provinces. By the end of 2020, 25,000 small hydropower plants were in operation in the region, according to data from the state industrial media China Energy News.
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