Several major crypto mining companies in Texas are powering down their facilities to provide energy companies relief. Triple-digit temperatures this summer have pushed the state’s energy grids to the brink.
ERCOT, the agency that manages electricity distribution for the majority of the state, is asking customers to conserve energy in any way they can.
While these measures have helped avoid massive blackouts, energy experts do not think they are sustainable long term, given the rapid growth of crypto mining facilities in the state.
“I don’t think the grid can handle it,” said Dr. Joshua Rhodes, a research associate at the Webber Energy Group at the University of Texas at Austin. “If you run them hard, flat out nonstop, that does increase the chance something will break. And so I’m worried about that going into August. We haven’t gotten to the hottest part of the summer yet, statistically.”
Fortunately for the grid, demand is spiking while cryptocurrency is experiencing a crypto winter. This happens when crypto markets experience a decline in prices and trading.
Crypto analysts say mining has declined due to rising inflation, crypto lender Celsius filing for bankruptcy, and stablecoin Terra going under. As a result, prices have fallen, making it incredibly difficult to mine and be profitable.
However, if the market rebounds, some analysts project miners may be less flexible to cut back on energy use.
The Texas BlockChain Council said new energy generation is on the horizon. In an email, the organization’s President Lee Bratcher said, “Texas-based energy generators are building new generation and are ready to meet the new demand of a growing state like Texas.”
“I don’t think it will grow as fast as some people think if they’re not considering the supply side of the equation,” Dr. Rhodes said.
ERCOT projects bitcoin miners will use up to 27 gigawatts of power by 2026. That is enough energy to power 22 of Doc’s Deloreans and more than 20 million homes.
“To provide that much energy would also require supply to increase extremely fast,” Dr. Rhodes said. “I just don’t know if we can get that much concrete and steel in the ground fast enough to supply that.”
To alleviate blackouts, lawmakers in Congress are working with the EPA and the Department of Energy to hold companies accountable. They are requesting that miners submit a report on energy usage and carbon emissions.
