Bitcoin mining could be a win-win solution for countries like the UK that have problems with overproducing renewable energy.
An executive at a US-based digital asset technology company has suggested that Bitcoin mining may be the best way to eliminate renewable energy waste and grid congestion.
Bitcoin solution
Fred Thiel, CEO and Chairman of Marathon Digital, offered a solution to power grid operators and renewable assets who are finding it difficult to deal with grid waste and congestion.
Thiel, a well-known cryptocurrency miner, suggested that Bitcoin mining could help manage power grid congestion caused by excess energy. He commented on the waste being reported from wind farms in the UK.
Marathon Digital executives have slammed renewable energy providers for wasting excess energy and the resulting congestion costs, saying digital mining should be used to solve the problem.
Thiel added that BTC mining is one of the remedies that could make renewable energy more economically viable.
“Grid operators and renewable energy asset owners are increasingly concerned about adding large transmittable loads, such as Bitcoin mining, behind the meters at renewable energy sites, which can lead to grid congestion and energy consumption,” he said. We need to recognize that this is the only way to eliminate waste.”
The cost of upgrading the power grid to transition to renewable energy could reach more than $26 trillion by 2050, according to data. The CEO of the digital asset company said that consumers will be responsible for the upgrade costs, easing the financial burden on ratepayers.
VanEck's Matthew Sigel agreed that surplus energy could be diverted to Bitcoin mining.
UK to pay £1bn for record electricity wastage
The UK could be using its surplus wind energy to mine Bitcoin, but instead it pays wind power producers £1 billion a year to shut down their turbines.
NGMI! 🤡 pic.twitter.com/3tNFlLcHyb
— Matthew Siegel, CFA Recovery (@matthew_sigel) December 3, 2024
Managing power grid congestion
Bitcoin miners revealed that Marathon Digital was using Bitcoin mining to monetize its energy.
As a publicly traded company, Marathon Digital was able to use the proceeds from its convertible notes to purchase Bitcoin.
The market capitalization of cryptocurrencies currently stands at $3.4 trillion. Chart: TradingView
Reports indicate that while many companies around the world are exploring ways to use cryptocurrencies to manage surplus energy, many UK energy providers are not currently considering this solution.
For example, the Bern region of Switzerland has already approved a recommendation to evaluate Bitcoin mining to use surplus energy to stabilize the power grid.
🟠🟠Bitcoin and the Canton of Bern🟠🟠:
We have successfully passed a postscript asking the government to evaluate the integration of Bitcoin mining into the energy strategy of the city of Bern. Good news: Switzerland's summer solar power surplus will make Bitcoin mining more competitive globally. pic.twitter.com/38aOu4BZtC
— Korab Rashiti 🐍 (@KorabRashiti1) November 28, 2024
The Swiss regional parliament voted in favor of the proposal. The Swiss government is therefore currently considering incorporating Bitcoin mining into its energy strategy.
$1.3 billion in congestion costs
According to a report from Bloomberg, it has been revealed that the UK will incur $1.3 billion in congestion control costs to force wind farms to shut down.
The report added that wind farms will have to temporarily suspend operations because the power grid cannot handle the excess energy output.
In recent years, the country has been increasing its wind power capacity. Over the past five years, the company's offshore wind capacity has increased by 50%. Experts predict that the country's wind power generation capacity will double in the next five years.
However, its power grid capacity has not been able to keep up with the pace of increase in wind power generation capacity, leading to congestion problems. As a result, power companies have to pay to turn off some power plants while paying to turn on others.
Featured image from Getty Images, chart from TradingView
