Bitcoin mining could be a beneficial solution for countries like the UK that struggle with excess renewable energy production.
An executive at a US digital asset technology company has suggested that Bitcoin mining could be the solution the best way to eliminate waste and grid congestion for renewable energy.
Bitcoin solution
Marathon Digital CEO and President Fred Thiel offered a solution to grid operators and renewable resources struggling to deal with waste and grid congestion.
Thiel, a well-known cryptocurrency miner, suggested that Bitcoin mining could facilitate them manage network congestion resulting from excess energy. He expressed his opinion on reported losses in wind farms in the UK.
The executive director of Marathon Digital has criticized renewable energy operators for wasting excess energy and the associated congestion costs, saying they should utilize digital mining to solve the problem.
Thiel added that BTC mining is one possible means to make renewable energy more economically viable.
“Network operators and renewable asset owners must realize that adding large, distributable loads, such as behind-the-meter bitcoin mining at renewable energy facilities, is the only way to eliminate network congestion and energy waste,” he explained.
Data showed that the cost of modernizing the grid to transition to renewable energy by 2050 could reach more than $26 trillion. The CEO of a digital assets company said consumers would bear the cost of the upgrade, reducing the economic burden on ratepayers.
VanEck’s Matthew Sigel agreed that excess energy could be directed toward Bitcoin mining.
Britain pays £1 billion for wasting record amounts of energy
The UK could mine bitcoin from surplus wind power, but instead it pays wind farm operators £1 billion a year to shut down turbines.
I AM! 🤡 pic.twitter.com/3tNFlLcHyb
— Matthew Sigel, CFA recovery (@matthew_sigel) December 3, 2024
Network congestion management
Bitcoin miner revealed that Marathon Digital used Bitcoin mining to monetize its energy.
Marathon Digital, a publicly traded company, was able to purchase Bitcoin with proceeds from convertible bonds.
Reports show that many businesses in various countries are exploring how to utilize cryptocurrencies to manage surplus energy, a solution that most UK energy suppliers are not currently considering.
For example, the Bern region in Switzerland has already approved a recommendation to evaluate Bitcoin mining in order to stabilize the power grid by using surplus energy.
🟠🟠Bitcoin and the Canton of Bern🟠🟠:
We successfully passed a proposal requiring the government to assess the inclusion of Bitcoin mining in Bern’s energy strategy. Good news: Switzerland’s summer solar energy surplus will make Bitcoin mining highly competitive around the world.… pic.twitter.com/38aOu4BZtC
— Korab Rashiti 🐍 (@KorabRashiti1) November 28, 2024
The Swiss regional parliament voted in favor of this proposal. As a result, the Swiss government is currently assessing the inclusion of Bitcoin mining in its energy strategy.
Congestion cost of $1.3 billion
A Bloomberg report revealed that the UK is committing $1.3 billion to cover congestion costs for wind farms in a bid to persuade them to stop operating.
The report added that wind farms must temporarily cease operations because their grid cannot handle excess energy production.
Over the past few years, the country has increased its wind power generation capacity. Over the last five years, the capacity of offshore wind farms has increased by 50%. Experts forecast that the capacity of wind farms in the country will double in the next five years.
However, grid performance did not keep pace with the growth of wind power generation capacity, leading to transmission congestion problems. As a result, utilities have to pay some power plants to turn them off and others to turn them on.
Featured image from Getty Images, chart from TradingView
