Bitcoin mining could be a win-win solution to countries like the United Kingdom that are having problems with their excess output from renewable energy.
The executive of a US-based digital asset technology firm suggested that Bitcoin mining could be the best way to eliminate wastage and grid congestion on renewable energy.
The Bitcoin Solution
Marathon Digital CEO and Chairman Fred Thiel offered a solution to grid operators and renewable assets who find it difficult to address wastage and grid congestion.
Thiel, a known crypto miner, suggested that Bitcoin mining could help them manage grid congestion due to excess energy. He expressed his opinion on the reported wastage from wind farms in the United Kingdom.
The Marathon Digital executive lambasted renewable energy operators for the excess energy being wasted and its corresponding congestion costs, saying they should tap digital mining to solve this issue.
Thiel added that BTC mining is one of the possible remedies that will make renewable energy more economically viable.
“Grid operators and renewable asset owners must realize that adding large dispatchable loads such as bitcoin mining behind the meter at renewable energy sites is the only way to eliminate grid congestion and wasted energy,” he explained.
Data showed that the cost to upgrade the grid for renewable energy transition by 2050 could reach more than $26 trillion. The digital asset company CEO said that the consumers will be one to shoulder the upgrade costs, reducing the economic burden on rate-payers.
Matthew Sigel of VanEck agreed that excess energy could be diverted to mine Bitcoin.
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
Managing Grid Congestion
The Bitcoin miner revealed that Marathon Digital used Bitcoin mining to monetize its energy.
Marathon Digital, a publicly listed company, was able to buy Bitcoin using proceeds from convertible notes.
Reports said that many enterprises in various countries are exploring how to utilize crypto in managing excess energy, a solution that most British energy providers are not considering at the moment.
For instance, the Bern region in Switzerland has already approved the recommendation to assess Bitcoin mining to help stabilize the power grid by utilizing 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 Swiss region’s parliament voted in favor of the proposal. Hence, the Swiss government is now evaluating the integration of Bitcoin mining into its energy strategy.
$1.3 Billion Congestion Cost
A Bloomberg report revealed that the United Kingdom is shelling out $1.3 billion in congestion costs to wind farms to urge them to shut down their operations.
The report added that wind farms need to temporarily cease their operations because their grid cannot handle the excess energy output.
In the last few years, the country has boosted its wind power generation capacity. In the last five years, its offshore wind power generators’ capacity has increased by 50%. Experts are projecting that in the next five years, the country’s wind farms’ capacity will double.
However, its grid capacity could not keep up with the pace of the increase in wind power generation capacity leading to congestion issues. As a result, utility providers have to pay some plants to switch off while paying others to turn on.
Featured image from Getty Images, chart from TradingView
