Bitcoin mining could be a beneficial solution for countries like the UK that are struggling with their overproduction of renewable energy.
The executive of a US-based digital asset technology company suggested that Bitcoin mining could be the best way to eliminate waste and congestion from the renewable energy grid.
The Bitcoin Solution
Fred Thiel, CEO and president of Marathon Digital, offered a solution to grid and renewable asset operators struggling to address grid waste and congestion.
Thiel, a well-known crypto miner, suggested that Bitcoin mining could help them manage network congestion due to excess power. He expressed his opinion on the waste recorded at UK wind farms.
The Marathon Digital executive criticized renewable energy operators for excess energy being wasted and its corresponding congestion costs, saying they should turn to digital mining to solve this problem.
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 behind-the-meter bitcoin mining at renewable energy sites, is the only way to eliminate grid congestion and wasted energy.” energy,” he explained.
The data showed that the cost of upgrading the grid to transition to renewable energy by 2050 could reach more than $26 trillion. The CEO of the digital asset company said that consumers will be the ones to bear the upgrade costs, reducing the financial burden on taxpayers.
VanEck’s Matthew Sigel agreed that excess energy could be diverted to mine Bitcoin.
UK pays £1 billion to waste record amount of energy
The UK might be mining Bitcoin with its excess wind energy, but instead it is paying wind farm operators £1 billion a year to shut down the turbines.
AM! 🤡 pic.twitter.com/3tNFlLcHyb
— matthew sigel, recovering CFA (@matthew_sigel) December 3, 2024
Network congestion management
The Bitcoin miner revealed that Marathon Digital used Bitcoin mining to monetize its energy.
Marathon Digital, a publicly traded company, was able to purchase Bitcoin using the proceeds from convertible notes.
Reports say that many companies in several countries are exploring how to use cryptocurrencies to manage excess energy, a solution that most British energy suppliers are not considering at the moment.
For example, the Bern region of Switzerland has already approved the recommendation to evaluate Bitcoin mining to help stabilize the power grid by utilizing excess energy.
🟠🟠Bitcoin and Canton of Bern🟠🟠:
We successfully approved a postulate requiring the government to evaluate the integration of Bitcoin mining into Bern’s energy strategy. Good news: Switzerland’s summer solar energy surplus will make Bitcoin mining highly competitive globally.… pic.twitter.com/38aOu4BZtC
– Korab Rashiti 🐍 (@KorabRashiti1) November 28, 2024
The Swiss regional parliament voted in favor of the proposal. Hence, the Swiss government is now evaluating the integration of Bitcoin mining into its energy strategy.
Congestion cost of $1.3 billion
A Bloomberg report revealed that the UK is shelling out $1.3 billion in congestion costs to wind farms to urge them to shut down operations.
The report adds that wind farms must temporarily cease operations because their grid cannot support the excess energy production.
In recent years, the country has increased its wind energy generation capacity. In the last five years, the capacity of its offshore wind generators has increased by 50%. Experts project that in the next five years the capacity of the country’s wind farms will double.
However, its grid capacity could not keep pace with the increase in wind power generation capacity, leading to congestion issues. As a result, utility providers have to pay some plants to turn off and others to turn on.
Featured image from Getty Images, chart from TradingView
