As the US state of Texas faces a rapid influx of Bitcoin mining operations, the state’s electrical infrastructure will have to support the industry’s additional 5,000 megawatts (MW) of energy demand by 2023. .
The Bitcoin mining industry in Texas currently consumes about 500 to 1,000 MW of electrical energy. The Electric Reliability Council of Texas (ERCOT) predicts demand could grow fivefold by 2023 and has planned an additional 3,000 to 5,000 MW according to reports.
This expansion comes as the Lone star state plans to become home to 20% of the world’s Bitcoin mining. Texas has emerged as a destination for Bitcoin miners since the Chinese government officially banned Bitcoin mining in the middle of this year.
State governments have taken advantage of China’s grip by making Texas a haven for miners, which can now enjoy 10-year tax breaks, sales tax credits, and state-owned workforce training sponsoring country. At the beginning of September, cryptocurrency was officially recognized in Texas through two Texas House bills 4474 and 1576 signed by Governor Greg Abbott in June.
However, some Texas residents fear the current electricity situation cannot be improved. ERCOT’s management of the state’s electrical system came under close scrutiny by the Texas government in February when power outages in the critical area left about 5 million residents without power for many years. day.
However, the report just released by ERCOT failed to bolster confidence among Texans that power grid problems have been fully rectified.
Meanwhile, the mining community has been trying to assuage state concerns about potential resource consumption. The Texas Standard reported on October 21 that a number of Bitcoin miners have been working with local electricity suppliers to ensure the stability of the electricity situation.
On the other hand, the rest are intending to redirect operations using completely renewable and potential alternative energy sources such as natural gas to make the BTC mining industry more and more friendly. more environmentally friendly.
There is currently no proposal from the Texas state government to address the potential problems that may arise due to the increase in electricity demand from Bitcoin miners. As proposed by the Texas Standard, miners have the flexibility to shut down their hardware during peak demand periods or be charged a premium per kilowatt hour if they wish to continue in mining.