Tokyo Electric Power Company is evaluating its entering the Bitcoin mining space through its wholly owned subsidiary, Agile Energy X.
The basic idea is to exploit excess renewable energy that is completely wasted. By making the most of this waste, TEPCO aims to develop a better energy ecosystem while contributing to the growing green energy debate in the cryptocurrency market.
Using waste energy
While the concept of storing energy in landfills to mine Bitcoin is not entirely recent, TEPCO’s actions are unique in Japan. Kenji Tateiwa, president of Agile Energy X, believes their strategy will go a long way toward increasing energy production.
He said:
“What we do has few parallels in Japan. The success of our framework would encourage the introduction of more green energy.”
This usually happens during the day when demand does not meet supply. The concept is to harvest the extra energy produced during peak solar power generation times.
This initiative is extremely essential because Japan has set itself the goal of increasing renewable energy sources by 2050. The country’s energy landscape is challenging, especially after changes following the Fukushima disaster forced a reassessment of energy sources.
Combining Bitcoin Mining By incorporating this technology into its operations, TEPCO will not only reduce waste but also stabilize the network during periods of oversupply.
The Up-to-date Frontier for Bitcoin Mining
High energy consumption and the resulting environmental impact have been the subject of repeated criticism in the context of Bitcoin mining.
However, thanks to the project proposed by TEPCO, this could change. Indeed, the ease and speed at which Bitcoin miners could operate – very different from where energy is normally consumed – means that surplus energy could be absorbed by the miners themselves, thus contributing to the stability of the network. This is especially essential in a country like Japan, where energy shortages are a priority.
Bitcoin mining device used by Agile Energy X Inc. Image: Agile Energy X Inc.
Agile Energy X will be testing this framework thoroughly. The startup is preparing for a project that could change the way energy companies view cryptocurrency, even if it hasn’t even started mining yet.
The potential for Bitcoin mining to be used as a financial incentive for renewable energy producers could encourage greater investment in green technologies. This is a potential precedent that could be set not only for other energy companies in Japan, but also for several energy companies around the world.
Future Implications for the Crypto Industry
As the global conversation about climate change gains momentum, there are growing calls for the cryptocurrency industry to adopt more sustainable methods. This could be one of those pilot projects that will see renewable energy sources combined with Bitcoin mining, helping to minimize carbon emissions from mining.
Featured image from The Miner Mag, Chart from TradingView
