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Mining rigs do not need an uninterrupted supply of electricity, so their long-term placement in Texas can be beneficial for the energy industry. This is reported by the Office of the Financial Comptroller of the State.
In a published note, Webber Energy Group researcher Joshua Rhodes explained that miners in Texas are attracted by the low cost of electricity and the fast process of connecting equipment to the system.
According to him, despite the energy consumption, cryptocurrency mining offers a potentially beneficial link between energy consumption and its production.
Miners can participate in demand response programs, which involves disconnecting them from the network during peak loads.
“Supply and demand work in tandem, so if a miner stops using electricity, it will help meet the increased demand in the network and increase its stability,” Rhodes said.
In addition, the intensification of cryptocurrency mining can stimulate the creation of additional energy infrastructure. Mining plants are often located next to wind and solar power plants, providing a lower tariff. This practice is common, for example, in remote areas of West Texas.
“If cryptocurrency mining increases in this region, the price of electricity may rise, which, in turn, will accelerate the construction of new stations,” the expert said.
The main difference between mining and large industrial enterprises, according to Rhodes, is that “the power for it can quickly appear and just as quickly disappear depending on the price of bitcoin.”
The scientist added that cryptocurrency mining could also potentially stimulate renewable generation, subject to the conclusion of long-term contracts with electricity suppliers.
“If miners are willing to show flexibility, for example, by participating in the program of controlled load resources, then they can become a valuable asset for the network,” he concluded.
In parallel, texas authorities are discussing the reuse of excess gas for cryptocurrency mining in order to reduce harmful emissions.
On the eve of the analyst Arcane Research predicted a tenfold increase in the annual energy consumption of the bitcoin network by 2040, provided that the price of the first cryptocurrency reaches the level of $ 2 million.
Recall that last week members of the Committee on Energy and Commerce of the US House of Representatives sent a request to mining companies Core Scientific, Riot Blockchain, Marathon Digital and Stronghold Digital to provide data on the impact of their activities on the environment.
Earlier, an analyst from Capriole Investments stated the completion of the capitulation phase of bitcoin miners.
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