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BTC mining aids Texas’ grid stability, cutting $18 billion in costs by replacing gas peaker plants with efficient demand response.
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A new research report by the Digital Assets Research Institute (DARI) revealed how Bitcoin mining has impacted the Texas electrical grid and saved the state as much as $18 billion by eliminating the need for new gas peaker plants.
The findings come as Texas has grappled with extreme weather conditions in recent years, including a 2021 winter storm that caused widespread blackouts and significant economic losses.
Historically, grid operators have relied on gas peaker plants to address peak electricity demand. While effective in short bursts, these plants are costly, remain idle for much of the year and emit substantial greenhouse gases.
DARI’s report shows that Bitcoin (BTC) mining offers a more efficient alternative to gas peaker plants via demand response programs where BTC miners can quickly reduce energy consumption during peak demand to stabilize the grid.
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Averting costly choices with BTC mining
The DARI report stated that the Electric Reliability Council of Texas (ERCOT) sought alternatives to the traditional gas peaker plants following the devastation of the 2021 winter storm.
Determining that BTC mining could help balance electricity demand and supply to prevent further blackouts, ERCOT’s demand response programs have seen voluntary participation by the miners.
ERCOT’s demand response programs voluntarily reduce energy usage during peak demand. This approach has eliminated the need for Berkshire Hathaway Energy’s proposed $10 billion investment in new gas peaker plants, which would have further increased electricity costs for Texans.
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Environmental consideration of BTC mining
Gas peaker plants have been criticized for inefficiencies and their contribution to greenhouse gases while sitting idle for most of the year, releasing hundreds of thousands of tons of carbon dioxide (CO2) into the atmosphere annually.
According to the DARI report, BTC mining offers a cleaner and more cost-effective solution where miners operate continuously and generate revenue while remaining able to reduce energy consumption when needed during peak demand.
The environmental implications for this flexibility enable electrical grids to incorporate more renewable energy sources like wind and solar power, which can go underutilized due to their intermittency in energy production.
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Lobbying efforts and BTC mining developments
Despite the advantages of BTC mining, the industry faces resistance from corporate and political entities, such as lobbying by Berkshire Hathaway Energy, according to the DARI report.
The report highlighted that some lawmakers in Texas have questioned the role of BTC mining as an alternative to gas peaker plants, even as ERCOT and peer-reviewed studies confirm its positive impact on grid stability.
Proponents of BTC mining, such as US Senator Ted Cruz, in an exclusive interview with Cointelegraph, described Texas as “an oasis for Bitcoin” due to its low cost and business-friendly environment.
Cruz said that Texas is known for its “abundant, low-cost energy” and that he intends to ensure the trend of more jobs in Texas continues and accelerates while the state increases its BTC mining activities.
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This article first appeared at Cointelegraph.com News
