How Bitcoin mining stabilized the grid, saved Texans $18 billion, and earned the ire of Berkshire Hathaway Energy

Rian Dewhurst | Source: Dari | Posted 01/23/2025

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Gas peaker plants are natural-gas-fired electricity plants that are needed only during peak electricity demand, and remain idle for the majority of the time. These plants are the main way of dealing with the high intermittency of renewable energy generation like solar and wind, but come with high setup and mainentance costs. For some time now, industry insiders have seen that coupling renewable energy generation with Bitcoin mining has helped stabilize electricity grids – we now have the data to back this up and show how Bitcoin mining obviates the need for gas peaker plants.

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Gas peaker plants are natural-gas-fired electricity plants designed to operate during times of peak electricity demand, remaining largely idle the rest of the time. These plants help balance the intermittency of renewable energy sources but come with high setup and maintenance costs. Recent data shows that combining renewable energy with Bitcoin mining can stabilize electricity grids, reducing the need for gas peaker plants.

Bitcoin mining provides a flexible demand-side solution that obviates the need for gas peaker plants, offering environmental benefits and cost savings. Studies have shown that Bitcoin mining, when coupled with demand response measures, can be emission-neutral compared to using a peaker plant. ERCOT CEO Brad Jones implemented Bitcoin mining as part of the grid stabilization strategy, successfully avoiding blackouts and reducing energy costs for Texans, leading to a diminished requirement for costly gas peaker plants.

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How Bitcoin mining stabilized the grid, saved Texans $18 billion, and earned the ire of Berkshire Hathaway Energy

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