Major Texas crypto miners adopt a proactive approach and close down 99% of their mining operations to fear an expected Arctic blast. A massive winter storm with heavy snow, rains, and flash flooding with thundered storms can damage the power grids of state areas.
The crypto miners enjoy low-cost power energy in the state, reducing their expenses and improving profitability. The primary purpose of shutting down mining operations is to save energy consumption to avoid power failure. Texas had already faced severe power failure in 2021 storms resulted in an energy breakdown to 4.5 million households and businesses with estimated property damages of $200 billion.
Related Reading | Winter Storm 2021
All activities are collective efforts with the Electric Reliability Council of Texas (ERCOT) to manage the Texas power grid operations. ERCOT has already affirmed on Wednesday to use “all tools to manage the grid.” Besides, Crypto miners can also avail advantages in the form of state incentives for returning energy to the power grid.
Crypto miners to shut the operations to overcome expected power shortage
Many mining firms are shutting down operations to ease ERCOT. For example, one of the most significant North American crypto miners, Riot Blockchain, reduced power usage up to 98-99%. However, the communication director of Riot told CoinDesk, “we will continue to do as needed until there is no extreme stress on the ERCOT grid.”
Related Reading | ERCOT asked Texans to conserve power as electric grid again struggled to keep up with demand
Another mining firm, Compute North, engaged in hosting bitcoin miners through their data centers, briefed CoinDesk that they are very keen on observing storm movements. “We are prepared to respond real-time to curtail our operations to support ERCOT, grid stability, and power demand,” Compute North Director of Energy Peter Liska told.
Nathan Nichols, CEO of Texas-based miner Rhodium, tweeted;
“exas-based bitcoin miners are curtailing their load starting TODAY to help provide excess power reserve for the winter storm. We are proud to help stabilize the grid and help our fellow Texans stay warm.
In short, Texas authorities have planned many programs to save power energy for coping with the upcoming thunderstorm. The key features of those programs include incentives to major power users crypto miners for curtailing their operations during the highest power demand hours.
According to Payfer, Riot can enjoy many benefits by helping ERCOT streamline power grid operations during storms. The benefits could be participation in the load management programs or any other service and fixed lower power prices agreements for a long time.
Compute North’s Liska said that the demand reaction plan could manage energy shortage; consumers reduce energy usage with high energy prices. In the same way, companies can control energy production according to demand and consumption.
Liska further explained,
“Rather than incremental energy production, we reduce our load giving power back to the grid, which is more cost-effective and efficient than spinning up additional energy reserves.”
Featured image from Pixabay, chart from TradingView.com