The current energy crisis has forced every sector and consumer to rethink their energy needs and supply. As optimization of energy sources and usage has never been more luring cost-wise, the energy sector has seen some very interesting merges lately — crypto mining being one of them.
Grid stabilization through mining: two birds with one stone?
The crypto mining sector has gained new, interesting grounds lately. Often bitcoin mining is perceived as highly energy-draining, a topic that has been mentioned in a growing number of news articles related to harnessing renewable energy sources and stabilizing electricity grids both in rural and more advanced areas. Despite making a seemingly odd coupling, crypto mining rigs placed by unstable yet green energy sources make perfect sense. At best, BTC mining can stabilize these electricity grids making it economically more viable to expand energy production.
Bitcoin mining case Texas
A great example of maximizing this synergy comes from Texas, where a NASDAQ-listed Texan Bitcoin mining company located a wind farm with a transmission system that couldn’t harness all the output to the system. According to Forbes, a pairing with a crypto farm seems successful, as the mine can pull energy from the wind farm. This, in turn, prevents the need for curtailment at peak times when the wind is at full tilt.
Besides using the energy that would otherwise go to waste, the Bitcoin and wind farm symbiosis can lead to the stabilization of the wind farm output for more enhanced operations. Besides this, additional bonuses include avoiding congestion and problems with balancing the grid during various external loads.
But does the mining take over more important operations? No, not really. If BTC mining is seen as a secondary operation, the mining operations can be turned down and continued at a more favorable moment. For this grid stabilization service, the grid pays miners compensation. Hence, the symbiosis profits both parties.
Yes, it actually makes sense
It is true that Bitcoin mining has a bad reputation, and for a good reason — according to Bitcoin Mining Council’s Q2 report, as we’ve covered earlier, Bitcoin consumes 0,15% of the total world’s energy production. As long as the current consensus protocol persists, using renewable energy sources is one of the key ways to suppress the climate effect of this cryptocurrency.
It makes perfect sense, especially if the mining cumulates its positive effects on the local electricity grid. Optimization of energy usage can bring a company and industry to whole new spheres climate-wise. If your business needs assistance with greener energy solutions, our GRN Energy consultants are just one message away!