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

November 29, 2022, The Electric Reliability Council The State of Texas (ERCOT) has published a report on the seasonal assessment and resource adequacy of the ERCOT region. ERCOT research shows that bitcoin mining operations are flexible operations that could benefit the Texas power grid during the upcoming winter and extreme peak loads.

ERCOT report says bitcoin mining facilities in Texas could reduce operations this winter, saving 1.7 GW of energy

Texas Power Transmission ERCOT, the American organization that operates the net, has released a study showing that: Bitcoin mining operations lend themselves to direct response systems. Researchers for the report examined installed generation capacity based on historical data and extreme peak load scenarios. The report shows that bitcoin mining operations could shrink operations and save about 1.7 gigawatts (GW) of energy during the Texas winter.

Other systems that utilize large electrical loads are unable to adapt to the needs of direct response, while Bitcoin miners have a break-even point between Bitcoin spot price and cost. It has been known to stop operations once it reaches a point. manufacturing. “This break-even cost is estimated at $86/MWh and is based on the economics of the Antminer S19 Bitcoin mining rig as of early November,” details the ERCOT study.

ERCOT is studying a direct response system as Duke Energy Corporation, his second-largest energy company in the United States, was reportedly researching bitcoin mining in his July. is not the only grid operator available. Duke’s principal analyst said the Bitcoin mining operation has partnered with Duke to provide data for Bitcoin’s Demand Response (DR) study. In the same month, his Bitcoin mining infrastructure provider, Lancium, revealed how its operations in Texas could reduce the load in his DR situation.

Lancium has partnered with Broad Reach Power LLC, a Texas battery storage provider, to ensure that when the power grid is hit by extreme conditions, the battery will keep Lancium facilities running without compromising computing power. continue to let In addition to heavy load times and extreme weather, bitcoin miners are constantly running for bitcoin, providing grid operators with a reliable stream of revenue. Grid operators believe there will be plenty of energy this winter, even as bitcoin miners tap into power resources, according to ERCOT research.

“Assuming the ERCOT region experiences typical winter grid conditions, ERCOT will estimate the projected peak demand across the system for the next winter season from December 2022 to February 2023. We anticipate that there will be sufficient installed generation capacity to meet the

The news follows a US Congressman requesting information from his ERCOT officials regarding Bitcoin mining operations. Politicians believe bitcoin mining has an impact on so-called climate change, with bitcoin miners potentially destabilizing the Texas grid. ERCOT’s new CEOtold reportersthat ERCOT “wants to be able to serve any business that wants to do business in Texas.” And that includes cryptominers.

ERCOT reports say that politicians are skeptical about forecasting grid instability, as bitcoin mining facilities may be the only type of operation that can quickly respond to a DR situation. Definitely shown to be wrong.

His 22-page ERCOT study on seasonal assessment and resource adequacy of ERCOT regions can be read in fullhere. increase.

What are your thoughts on the report issued by ERCOT? What are your thoughts on bitcoin mining operations applied to direct response systems? Please let us know what you think.

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