One would think that powerplants’ sales would come to a halt with China’s intensifying crackdowns, but that’s not exactly the case.
Instead of slowing down or stopping completely, the sale of hydroplants, specifically the small-scale ones with 50-megawatt capacity, has increased.
This trend, which is an attempt of owners to offload their assets now that the demand for cheap energy is rapidly decreasing, was sparked by the government’s crackdown on crypto mining facilities.
Hydroplant owners have found hope in Xianyu, a popular second-hand e-commerce platform, to sell their assets now that hydropower demand is waning.
How to pitch a hydroplant?
Owners have been creative in pitching their hydro plants in the second-hand market, and one of the most interesting ads says that buyers can “secretly” conduct crypto-mining operations using hydropower plants.
Also, buyers can find a lot of good deals since hydroplant owners are obviously willing to sell their assets at a lower price since the demand for hydropower has decreased.
There are plenty of hydroplants in China, especially in the provincial areas, not because of Bitcoin, of course, but to provide electricity on hard-to-reach areas.
These plants were originally intended to decrease the poverty level of the residents, control floods, and conserve energy, and crypto-mining came later to piggyback on hydroplants’ benefits.
Hydroplants with a capacity of 50 megawatts are considered small, and the big ones have a capacity of 22,500 megawatts.
The Yangtze River Economic Belt, which is composed of nine Chinese provinces, has an astounding 22,500 small hydropower plants but 20,000 of them were ordered to be certified due to the ecological damages they are causing.
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