Can Crypto-mining Assist in Load Management?
- Aug 17, 2022 12:00 am GMT
Last week Utility Dive had a piece looking at when utility providers and crypto miners could work together to help with load management. On the whole many people would consider that crypto mining is terrible for load management because of the amount of energy they use. Although there is a lot of evidence to back up this view, many argue that there are still situations where crypto miners could assist in balancing the grid.
Some utility providers have sold a lot of energy upfront to get the boost right away, because of the likely chance that the crypto miner might move away within a few years and upset the balance. The utility provider can grow financially by selling to more financially profitable companies, which are often crypto miners.
In terms of the crypto miners’ need, it seems as though they will not endlessly need energy because at some point the energy will become too expensive. Given this reality, a crypto miner might be resistant to engage in a contract that requires more long-term use and no cap on rate charges. Still as crypto miners come further into development, miners and companies are working through additional ways to partner and overcome any logistical hurdles.
The piece went on to say that crypto can help the grid for a few reasons. First, crypto miners will be willing to decrease their demand during high use periods, and buy during low use periods. Additionally, crypto miners have flexibility unlike some person going through their daily routine or a small business that has to be open from 9 am to 9 pm, crypto mining’s flexibility sets it apart from other industries. The author even posited that there is a possibility that the flexibility on crypto miners’ part could lead to decreases in emissions.
The author concluded by urging crypto miners and utility providers to continue to work together to develop ways to prevent problems that come from crypto mining, and to improve load management. This was a strong piece that covered a perspective not often seen in energy circles. Still, I feel it could have gone further in-depth on the drawbacks of cryptocurrency with grids. It would be particularly interesting to read about the situation in states such as Texas and California. I was at a panel a few weeks ago where one of the panelists claimed that cryptominers helped Texas get through struggles with their grid. It would be great to hear more on that claim.
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