The Electric Reliability Council of Texas (ERCOT), the state’s grid operator, forecasts a fivefold increase in energy loads as Bitcoin mining becomes more popular in Texas. According to ERCOT, at least 5,000MW of additional electricity will be required over the following two years, by 2023, to enable crypto mining and data centers.
According to ERCOT officials, the cryptocurrency industry is already consuming up to 1,000MW of Texas’ electricity.
Texas has become a key hub for Bitcoin mining as a result of China’s crackdown on all crypto-related operations earlier this year. China’s strong retribution was motivated by the crypto mining industry’s excessive usage of power.
According to a Data Center Dynamics article, the state offers a 10-year tax exemption, sales tax credits, and state-sponsored worker training to entice additional crypto miners.
According to rumours, two of the world’s largest cryptocurrency mines are currently under construction in Texas.
Numerous citizens have linked the state’s regular power disruptions to the energy-intensive practise of Bitcoin mining.
In February 2021, the Texas Electricity Board was penalised for poor supply management, which resulted in outages and frigid days. Many people perished during this time period due to a lack of heat and food. Industry was also forced to stop operations.
ERCOT attributed the incident at the time to an increase in the frequency and severity of extreme weather, a problem that is predicted to worsen as a result of human-caused climate change.
Residents in Texas are concerned that the already overburdened infrastructure of the state’s energy grid will be taxed even further.
Bitcoin mining devices are always on, which means they consume electricity
Between January 1, 2016 and June 30, 2018, the mining of four main cryptocurrencies released up to 13 million metric tonnes of CO2.
However, in recent years, a number of pro-crypto countries have taken steps to decarbonize the process by powering cryptocurrency mining with renewable energy.
For example, El Salvador’s Bitcoin mining operation is fueled by geothermal volcanic energy.
A Bitcoin mining operation in Florida has been suggested to be located near Miami’s nuclear power plant. Nuclear energy is on the verge of being recognized as a viable ESG energy source, according to a report by Latest News Today.