How Bitcoin Mining Can Mitigate Renewable Energy Waste

Bitcoin miners, being the unique power consumers they are, can be a possible solution to the problem of renewable energy waste.

Bitcoin Mining Can Be Utilized To Use Up Excess Power Produced By Renewables

As per the latest weekly report from Arcane Research, the flexibility of BTC miners means they can help mitigate wastage produced due to the nature of renewable energy resources.

Wind and solar power sources don’t generate energy at a constant rate, but at a variable one. This variation isn’t something we can control, so these sources inevitably end up generating amounts different from the grid’s needs.

In times when these generators produce excess energy, the power prices in the market can crash to very low values, or even sometimes negative rates.

Both wind and solar have observed some sharp growth in recent years, and according to the report, they are expected to keep growing rapidly. Here is a chart that shows the trend in the global capacities of these sources so far, and how they will likely do in the future:

Looks like solar will grow much more faster than wind in the coming years | Source: Arcane Research’s The Weekly Update – Week 36, 2022

The report notes that there are a couple of reasons why Bitcoin mining could possibly mitigate the frequency of negative prices in power grids with solar and wind sources.

First, mining is location agnostic, meaning miners can setup their facilities pretty much anywhere around the world without any issues, as long as the location has power available.

And second, mining machines can be switched on and off as and when miners like, without causing any problems.

These factors mean that miners can shift their farms close to renewable sources, and only take power when there is excess energy available. In all other times, the generator will deliver it straight to the grid.

Other than these, there are also some other reasons that make mining suitable for this purpose. For example, the portability associated with mining rigs, and the fact that their energy intake can be varied notch by notch, makes it possible for miners to use only exactly as much excess energy as is available.

The report explains that as solar and wind continue to grow, the excess energy produced by them will also become more. If left unmitigated, this problem can threaten renewable energy economics and limit the sector’s growth. It would appear that Bitcoin mining can perhaps help curtail this issue.

BTC Price

At the time of writing, Bitcoin’s price floats around $20.2k, up 7% in the past week.

The value of BTC has plunged down | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on, charts from, Arcane Research

Related Posts

Nexo-labeled address withdraws $153M in Wrapped BTC from MakerDAO

The crypto community chose to link the funds’ withdrawal with Nexo’s insolvency rumors due to the wallet’s name — Nexo: 0x8fd. Just a few days after market…

Ontario Securities Commission (OSC) Files Lawsuit for $51M Dignity Token Asset Offering

The Ontario Securities Commission (OSC) has filed a lawsuit against Troy Richard James Hogg for selling unregistered securities in an ICO where he raised $51 million. According to…

How a Bot Gained and Lost Over $1 Million of ETH in One Night

On Tuesday night, an Ethereum MEV bot gained 800 ETH through the use of clever arbitrage, only to lose all of it and more to a hacker…

VeChain holds hundreds of millions in Bitcoin, Ethereum, VET, and stablecoins to become #1 blockchain project in the world

VeChain foundation’s financial report for Q2 2022 shows that it holds $535 million worth of crypto reserves. The company’s crypto valuation for Q2 2022 is 44 percent…

Spanish Soccer League Laliga Partners With Globant to Support New Web3 and Metaverse Initiatives

Laliga, the premier soccer league organization in Spain, has announced a partnership with Globant, an Argentine software giant, to bring Web3 and metaverse experiences to its fans….

Celsius Faces Trouble Selling Its Stablecoins Amid CEO Resignation

Regulators in Texas and Vermont oppose the plan to sell the stablecoin funds that keep the company bankrupt. The agencies believe that Celsius’s request is actually trying…

Generated by Feedzy