The Tokyo Electric Power Company is evaluating its entry into the Bitcoin mining space through its wholly-owned subsidiary, Agile Energy X.
The primary idea here is to make use of excessive renewable energy which goes to utter waste. Making the most out of this waste, TEPCO is looking to develop a better energy ecosystem while creating contributions in the evolving green energy debate in the cryptocurrency market.
Utilizing Waste Energy
While the concept of landfilled energy for mining Bitcoin is not new in its entirety, TEPCO’s effort is singular in Japan. Kenji Tateiwa, president of Agile Energy X, believes their strategy would go a long way toward advancing energy output.
He said:
“What we are doing has few parallels in Japan. Success of our framework would prompt more green energy to be introduced.”
Usually occurring during the day when demand may not meet supply, the concept is to gather the extra energy generated during peak solar generating hours.
This initiative is highly relevant, as Japan has set a target of boosting renewable energy capacity by 2050. The energy landscape of the country has been rough, especially with changes following the Fukushima disaster, forcing them to take a second look at the sources of energy.
By combining Bitcoin mining into their operations, TEPCO would not only reduce waste but also stabilize the grid in times of oversupply.
A New Frontier For Bitcoin Mining
The high consumption of energy and the consequent environmental impact have been widely criticized on more than one occasion when it comes to mining Bitcoins.
However, with the project put forward by TEPCO, this might be in for a change. Indeed, the ease and speed at which Bitcoin miners could operate–very different from places of normal consumption of energy–means excess energy could be absorbed by the miners themselves, thus contributing to the stability of the grid. This is particularly important in a country like Japan, where the priority issue is a lack of energy.
Bitcoin mining device used by Agile Energy X Inc. Image: Agile Energy X Inc.
Agile Energy X will test this framework extensively. The startup is preparing for a project that could transform how energy companies see cryptocurrency, even if mining has not begun.
The potential for Bitcoin mining to be used as a financial incentive for renewable energy producers could incentivize more investments in green technologies. It is a potential precedent that could be set not only for other energy firms in Japan but also for several energy companies around the world.
Crypto Industry Future Implications
As the global conversation on climate change escalates, there is an increasing call for the crypto industry to use more sustainable methods. This might be one of those pilot projects which would lead to bringing a mix of renewable energy sources along with Bitcoin mining, hence helping to minimize carbon emission from mining.
Featured image from The Miner Mag, chart from TradingView
