A working paper authored by Bitcoin advocates and the former president of ERCOT, the operator of Texas' electrical grid, argues that Bitcoin mining has the potential to be a "critical tool" for clean energy and balancing the grid. Titled "Leveraging Bitcoin Miners as Flexible Load Resources for Power System Stability and Efficiency," the paper suggests that the interruptibility and swift load response capabilities of Bitcoin mining can improve grid flexibility and integration of renewable energy sources. The researchers highlight case studies of Bitcoin miners participating in demand response programs and providing grid services in Texas, showcasing their unique abilities as flexible and controllable loads.
Contrasting arguments
The findings of the paper contradict the claims made by anti-crypto politicians who have blamed Bitcoin miners for high energy usage and grid strain. Senator Elizabeth Warren and other Democrats have previously pressed ERCOT for information on the electricity consumed by Bitcoin mining operations. However, the researchers argue that Bitcoin miners can actually play a crucial role in demand response, thereby bolstering the technical and economic stability of the grid. Bitcoin mining pioneer Marshall Long even tagged Senator Warren in a retweet of the paper, stating that "The people who RUN the grids say you're wrong."
Complex impact and emerging data
While the researchers acknowledge that the comprehensive impact of Bitcoin on global energy demand and climate change remains complex, emerging data suggests that its effects might be more nuanced than previously believed. A recent study from Cornell University demonstrated how wind and solar projects can benefit from Bitcoin mining during their pre-commercial development phases. Additionally, innovations such as hydro-cooling farms and the use of associated petroleum gas have made Bitcoin mining more sustainable. In fact, clean energy usage for Bitcoin mining reportedly exceeded 50% in September.
