In the grand game of drawing Bitcoin miners to their territory, Texas has deployed a secret weapon: The “duck curve”. Propounded by Lee Bratcher, president of theTexas Blockchain Chamber, this idiosyncratic framework illustrates the changing energy supply and demand in a 24-hour cycle. Further intriguing is Texas’s adaptive approach, where the price of energy is allowed to “float” throughout the day and across the state, emulating the duck curve’s fluctuations.
This creates a favourable environment for Bitcoin miners in Texas, granting them an advantage and profitability in their operations. Bitcoin miners, having no geographical ties and flexibility, in when and where they consume power, are drawn to Texas, thanks to its abundance of cheap renewable energy and excess power that’s less costly or sometimes even free. This unique trait lands Texas renowned companies like Core Scientific, Genesis Digital Assets, Riot, and Marathon Digital.
Simultaneously, the Texas power grid, known as the “ERCOT,” for “Electric Reliability Council of Texas,” acknowledges this distinctive value brought to the grid by Bitcoin miners. However, it’s crucial to bear in mind that while Texas can be alluring for Bitcoin miners, the costs and consumption should not be dismissed. Bitcoin mining in Texas devours almost as much energy as the entire city of Austin, around 2,200 megawatts, which is nearly 3% of the entire state. Admittedly, during peak demands, Bitcoin miners can “give back” supply to the system through the state’s flexible system thus acting like a 2000 megawatts battery to the state.
However, arguments may arise questioning whether the grid would be healthier without the miners or not. Counteracting this viewpoint, Bratcher affirms Bitcoin miners’ demand during low demand times fortifies renewable energy consumption, benefitting wind and solar power companies.
To control the explosive growth, 2022 saw the implementation of the “Interim Large Load Interconnection Process” in Texas, meaning future Bitcoin miners would have to apply to modulate their power usage. This enactment curtailed the meteoric rise of new mining.
In retrospect, the conjuncture of the fluctuating power pricing model, abundance of cheap renewable energy, and state support has crowned Texas a hotspot for crypto mining. The undeniable economic contribution of creating around 2000 W2 jobs and 20,000 contractor roles bolster its growth and attraction. However, the climatic and regulatory challenges present hurdles that need careful tackling to ensure this growth trajectory carries on without causing major environmental concerns.
Source: Coindesk
