Applied Direct Response — ERCOT Study Shows Bitcoin Mining Is Beneficial to the Texas Grid – Mining Bitcoin News

On November 29, 2022, the Electrical Reliability Council of Texas (ERCOT) released a report on the seasonal assessment and appropriateness of resources for the ERCOT region. Research by ERCOT indicates that bitcoin mining is a flexible activity that could benefit the Texas grid during the upcoming winter and extreme load times.

ERCOT Report Says Bitcoin Mining Facilities in Texas Could Cut Operations and Lose 1.7 GW of Energy This Winter

The American organization that runs Texas’ electricity grid, ERCOT, has published a study showing that bitcoin mining operations are instrumental in direct response systems. The report’s researchers studied installed generating capacity based on historical data and peak load scenarios. The report indicates that bitcoin mining operations can cut their operations and free up about 1.7 gigawatts (GW) of energy during the Texas winter.

Other systems that take advantage of large electrical loads cannot be directly responsive to demand but on the other hand, bitcoin miners are also known to shut down once they reach the mid-spot breakeven price. of bitcoin and the cost of production. “This breakeven cost is estimated at $86/MWh and is based on the economics of the Antminer S19 bitcoin mining rig as of early November,” detailed ERCOT research.

ERCOT is not the only grid operator working on direct feedback systems as the second largest US energy conglomerate, Duke Energy Corporation, is reportedly working on bitcoin mining in July. Leading Duke analyst says bitcoin mining operations have partnered with Duke to provide data for bitcoin demand response (DR) research. The same month, bitcoin mining infrastructure provider Lancium disclosure how its operations in Texas can offload in DR situations.

Lancium has partnered with Texas-based battery storage provider Broad Reach Power LLC, and when the grid encounters extreme situations, the batteries keep Lancium’s facility running without sacrificing its computing power. Besides heavy load times and extreme weather events, bitcoin miners provide a reliable source of revenue for grid miners as they are constantly running in search of bitcoins. Research by ERCOT shows that even if bitcoin miners take advantage of the electricity, grid miners believe there will be enough electricity this winter.

“Assuming that the ERCOT Region experiences typical winter grid conditions, ERCOT anticipates that there will be sufficient installed generating capacity to service the peak system-wide forecasted demand for the upcoming winter. next, December 2022 – February 2023,” the report noted.

News by United States legislator pressured ERCOT officials to provide information regarding bitcoin mining. Politicians think bitcoin mining affects so-called climate change, and they think bitcoin miners can destabilize the Texas power grid. New CEO of ERCOT tell the press that ERCOT wants to “be able to serve any business that wants to do business in Texas. And that includes crypto miners.”

The report from ERCOT shows that politicians are believed to be wrong about their predictions of grid instability, as bitcoin mining facilities may be the only type of actionable activity in DR scenarios right away.

You can read the full 22-page ERCOT study on seasonal assessment and resource adequacy for the ERCOT region here.

Cards in this story

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What do you think of the report published by ERCOT? What do you think about bitcoin mining practices applied to direct response systems? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about the groundbreaking protocols emerging today.

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