Study Bitcoin – Europe
Bitcoin mining, often criticized for its energy consumption, is becoming a surprising ally in Europe’s energy transition. As the continent faces an energy crisis and imposes stricter regulations, Bitcoin mining is proving its flexibility and usefulness. By supporting grid stabilization, harnessing excess energy and integrating renewable energy sources, this technology is becoming an unexpected and important part of the energy discussion.
Germany, known for its engineering prowess, is leading the way in projects that combine Bitcoin mining with sustainable practices, offering a glimpse of its transformative potential.
The European energy crisis
The European energy crisis, exacerbated by geopolitical tensions and rising energy costs, has forced the continent to rethink its approach to energy consumption. Renewable energy sources such as wind and sun now account for 59.7% of public electricity generation in Germany. However, the intermittent nature of renewable energy poses challenges for grid stability.
The European Bitcoin Energy Association, founded in 2023, is exploring Bitcoin mining as a unique solution to the challenges facing the EU’s energy infrastructure. Rachel Geyer, chair of EBEA, explains: “Bitcoin miners can switch off when electricity prices rise and switch on when prices fall, making them an ideal partner for stabilizing networks.” Unlike data centers for companies like Amazon or Facebook Bitcoin miners are extremely flexible and can act as a responsive energy consumer. This adaptability complements renewable energy production and relieves strain on overloaded networks.
Beyond Germany, EBEA is working with other European mining companies that are integrating Bitcoin mining into the national network infrastructure. Austria, known for its use of hydropower, offers an ideal environment for the use of excess renewable energy, and a pilot project is currently underway between the Austrian power grid and 21Energy to use Bitcoin mining to support grid stability. These efforts aim to harness this clean energy while addressing grid stability challenges. “EBEA is collecting proof-of-concept projects to show how Bitcoin mining can help expand renewable energy and improve grid stability,” notes Geyer.
Law and subsidies
A new law in Germany is expected to impact Bitcoin mining. By encouraging the use of excess energy, this legislation could make Bitcoin mining a key player in addressing overproduction and curtailment issues. “We shouldn’t reduce energy production, we should use it,” says Geyer. The modularity of Bitcoin mining allows it to thrive in places where excess energy would otherwise be wasted.”
While Bitcoin mining is promising, government subsidies for traditional renewable projects can distort the market. “Subsidies often create solutions that are no longer viable in the long term if the funds dry up,” warns Geyer. Bitcoin mining offers a market-driven approach to energy use, promoting efficient and sustainable practices without relying on subsidies.
German engineering at the forefront
Germany’s reputation for engineering excellence is evident in its approach to Bitcoin mining. Companies like Terahash are pioneering this technology and developing advanced solutions. “The solutions we see today did not exist two years ago, underscoring the rapid development of Bitcoin mining technology,” said Matthias Fendt, head of operations and sales at Terahash.
Bitcoin miners in Europe
By collaborating with industry leaders, including giants like Siemens, Terahash brings these solutions to life, further bridging the gap between Bitcoin mining and German industrial expertise. Their projects reach beyond Germany and demonstrate the potential of Bitcoin mining for integration into sustainable energy practices across Europe.
Terahash’s “Genesis” project in Finland shows how well the integration works. This facility is powered entirely by renewable energy and uses high-temperature miners to generate heat at 70°C. The heat generated is fed into the local district heating network and helps to provide energy for a Finnish city of 12,000 residents all year round – for hot water in the summer and for heating houses in the winter.
This makes Bitcoin mining an important source of heat for the city and shows how sustainable and ecologically responsible mining can be implemented in Europe.
A German Kärcher car wash equipped with solar panels shows how Bitcoin miners can be integrated into everyday operations. Solar energy powers two Bitcoin miners that generate heat to de-ice floors and warm water for cleaning in winter, providing a fully integrated, energy-efficient solution. “These small projects drive innovation and demonstrate the versatility of Bitcoin mining,” notes Geyer.
The vision
Bitcoin mining is increasingly being explored as part of Europe’s changing energy infrastructure. Projects in Germany and other regions show how integrating renewable energy goals and practical applications can contribute to energy solutions.
“We are involved in several projects that involve Bitcoin mining. In one case, we are working with an industrial park to increase its attractiveness for potential companies. By integrating solar PV, battery storage, and Bitcoin miners, we can achieve multiple use cases: grid stability, predictable energy costs for businesses, and heat provision for common spaces like a middle school, etc.
