When the bitcoin mining startup Riot Platforms lowered its power usage during a Texas summer heatwave, it helped the Electric Reliability Council of Texas, or ERCOT. Riot reported that it received $31.7 million in power and demand response credits for August in its most recent production and operations update.
Riot Cuts Power, Boosts Texas Energy Stability: Bitcoin Mining's Win-Win
Politicians that are wary about bitcoin, like Massachusetts Democrat Elizabeth Warren, would want to learn more about demand response programs and how bitcoin mining might improve energy grid effectiveness. Demand response, to put it simply, is a strategy employed by electrical networks to persuade consumers to reduce or modify their energy use during peak hours in response to time-based rates or other financial incentives.
Only a small number of commercial companies are able to deploy major demand response systems cost-effectively, therefore crypto mining may be the best option for shedding load. In a news statement dated September 6, bitcoin mining startup Riot Platforms stated that during peak electricity demand last month during one of the worst heatwaves of the summer, it cut its power use by 95%. Riot consequently received $31.7 million in demand response and power credits.
According to Jason Les, CEO of Riot, "August was a landmark month for Riot in showcasing the advantages of our unique power strategy." "Riot set a new monthly record for power and demand response credits in August with a total of $31.7 million, breaking the previous record set in 2022.
According to Riot's CEO, the electricity and demand response credits they received were roughly equal to 1,136 BTC based on the monthly average price of bitcoin in August. He added that the credits significantly lowered Riot's cost of mining bitcoin. Demand response technologies are becoming more popular in the bitcoin mining sector. Lancium Mining Company worked with a Texas battery storage company last year. Lancium's fleet can continue mining even when the power is cut off without losing computational efficiency.
Due to significant winter storm-related blackouts in Texas in February 2021, bitcoin miners had to restrict their power output in order to help ERCOT. Similar circumstances occurred in February 2022 when demand response system activities reduced power in preparation for winter storms. Demand response systems combined with bitcoin mining are of great interest to major energy grid operators.
Demand response has become a key component of ERCOT's plan for grid resilience as a result of the particular difficulties it has encountered lately. The second-largest U.S. energy business, Duke Energy, disclosed in July 2022 that it was investigating demand response systems and has partnered with a few particular bitcoin miners for experiments.
What do you think about ERCOT continuing to operate sustainably thanks to Riot's DR systems and bitcoin mining? Post your ideas and viewpoints on this topic in the comments area below.