Texas Bitcoin Miners Power Back Up After Voluntary Suspension During Grid Strain

Bitcoin Mining operations in Texas have resumed amid record temperatures that are shooting across parts of the US and Europe.

Following a request from the Electric Reliability Council of Texas (ERCOT) on July 10, Bitcoin miners in Texas voluntarily reduced operations to relieve pressure on the power grid.

“It’s important to manage the web where you are,” said Romain Nouzareth, co-founder, chairman and CEO of Bitcoin mining company SATO. Decrypt in an interview.

“We strive for performance, and we get it from clean energy, and from the way we manage our computers to make them perform by doing one thing – putting our digital estate in stone, every ten minutes,” he said .

Nouzareth noted that while most Bitcoin mining operations plug into the local power grid, many use alternative energy sources such as wind and hydropower.

Texas Bitcoin miners suspended mining operations after the state decided to save energy, Nouzareth said, adding that it is extremely beneficial for Bitcoin miners worldwide to handle peak electricity loads through restrictions.

Curtailment is the deliberate reduction in production below optimum production to balance energy supply and demand or to deal with transmission or demand constraints. In the case of Bitcoin miners in Texas, load shedding is the removal or reduction of electrical loads for a limited period of time from a utility grid system in response to a request by the operator of the utility grid or electrical grid system.

According to Argo Blockchain CEO Peter Wall, sixteen firms operating in Texas curtailed operations and returned about 1,000 megawatts of power to the grid, just over 1%.

“So just over 1% of the power used was given back to make sure there were no brownouts,” Wall said. “So there was no problem with supply not meeting demand.”

Wall continued to call it the right thing to do, but also acknowledged financial incentives for curtailment such as saving on transfer costs in the following year.

During the Bitcoin Mining Council’s second quarter 2022 briefing, Wall said: “We’re very excited to be set up there [in Texas]And one of the benefits is that it’s a grid that allows miners to reduce and feed power back into the grid.”

Wall noted that it is common in renewable energy production to reduce energy depending on grid and market conditions.

“When you have a grid that uses a lot of renewable energy like Texas does — and Texas is the nation’s number one producer of wind [power]- You always try to manage supply and demand, said Wall.

Bitcoin mining and energy issues

The energy consumption of proof of work (PoW) blockchains like Bitcoin continue to worry critics.

The Bitcoin Mining Council, organized by MicroStrategy CEO Michael Saylor, was formed in June 2021 after Elon Musk said in May of that year that Tesla would no longer accept Bitcoin due to “rapidly increasing use of fossil fuels for Bitcoin mining and transactions .”

Members of the Bitcoin Mining Council include Argo Blockchain, Riot Blockchain, Galaxy Digital and MicroStrategy. The group says they came together to promote transparency, share best practices and educate the public about the benefits of Bitcoin and Bitcoin mining.

According to the Texas Blockchain Council, mining in the Lone Star State has taken off, with over 27 mining companies operating in Texas since Governor Greg Abbott opened the door earlier this year.

Even the city of Fort Worth, Texas, has gotten in on the act and started its own mining operation in April.

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