Emily Walker
Bitcoin mining may represent a beneficial solution for nations like the United Kingdom that face challenges from excess renewable energy production.
A U.S. digital asset technology firm executive proposed that Bitcoin mining is an effective method to reduce waste and resolve grid congestion linked to renewable energy sources.
Leveraging Bitcoin
The CEO of Marathon Digital, Fred Thiel, put forth a strategy for grid operators and renewable energy providers struggling with energy surplus and grid saturation.
As a prominent figure in crypto mining, Thiel pointed out that Bitcoin mining could ease grid congestion caused by excess energy, including significant wastage from the UK’s wind farms.
Thiel criticized renewable energy operators for the substantial energy wastage and costs associated with congestion, advocating for the integration of digital mining to tackle these challenges.
He emphasized that bitcoin mining could serve as an effective solution to enhance the economic feasibility of renewable energy.
“Grid operators and renewable asset owners must recognize that incorporating large, controllable loads like bitcoin mining at renewable energy sites is essential to resolve grid congestion and minimize wasted energy,” he stated.
Research indicates that upgrading the grid to transition to renewable energy by 2050 might surpass $26 trillion, a cost ultimately borne by consumers, thereby alleviating the financial strain on rate-payers.
Matthew Sigel from VanEck concurred that surplus energy could be redirected towards Bitcoin mining.
UK Paying £1B to Waste a Record Amount of Power
The UK Could be Mining Bitcoin With its Excess Wind Energy, but Instead they are paying Wind Farm Operators a Billion Pounds a Year to Turn off the Turbines.
NGMI!
pic.twitter.com/3tNFlLcHyb
— matthew sigel, recovering CFA (@matthew_sigel) December 3, 2024
Addressing Grid Issues
The CEO of Marathon Digital shared that the company capitalized on Bitcoin mining to monetize energy efficiently.
By leveraging proceeds from convertible notes, Marathon Digital, a publicly traded entity, successfully acquired Bitcoin.
Various companies worldwide are currently exploring how to harness cryptocurrency for managing surplus energy, a strategy that many UK energy providers have yet to consider.
For example, the Bern region of Switzerland has approved a review of Bitcoin mining as a means of stabilizing the power grid by harnessing excess energy.
Bitcoin & Canton of Bern
We successfully passed a postulat requiring the government to assess integrating Bitcoin mining into Bern’s energy strategy. Good news: Switzerland’s summer solar power surplus will make Bitcoin mining highly competitive globally.… pic.twitter.com/38aOu4BZtC
— Korab Rashiti
(@KorabRashiti1) November 28, 2024
The parliament in the Swiss canton has endorsed this initiative, prompting the government to evaluate the role of Bitcoin mining within its energy policies.
$1.3 Billion in Congestion Expenditures
A report by Bloomberg highlighted that the UK is spending $1.3 billion on congestion fees to incentivize wind farms to halt operations.
The need for temporary shutdowns arises from the inability of the grid to manage the surplus energy produced.
Recently, the country has made significant strides in enhancing its wind power capabilities, with a 50% increase in offshore wind generation in just five years. Projections indicate that the capacity for wind energy will double in the next five years.
However, the grid’s capacity struggles to keep pace with the growing wind generation, resulting in congestion and necessitating payments to some facilities to stop operations while compensating others to continue.
Image from Getty Images, chart from TradingView