Bitcoin and Crypto mining is becoming highly popular amongst the people in Texas. Its operator Reliability Council of Texas (ERCOT) has predicted a five times appreciation in energy loads. ERCOT predicts that within the next two years, by 2023, it would have to produce at least 5000MW more power. This power will be basically to support crypto mining and other data centers.
This expansion is expected as the state is planning to become the home to 20% of the bitcoin and crypto mining operations that are currently in action around the world.
During a recent media interaction, the ERCOT officials reveal that the Crypto mining industry is already consuming up to 1000MW of the total power supply in Texas.
China on Crypto-related activities
After the Chinese government criminalized all the crypto-related activities recently this year, Texas came out as a Bitcoin or crypto mining hub for enthusiasts. One of the major concerns by the Chinese government to take this step was the Excessive power and electricity consumption due to crypto-related activities.
The state offers a 10-year tax abatement, credit on sales tax. Moreover, crypto miners that would be state-sponsored look highly attractive, a report by Data Center Dynamics said.
Texas Residents VS Crypto Mining
At the current point of time, two of the world’s largest cryptocurrency mines are under construction in Texas.
The residents of Texas have faced many electricity outages. They are now linking it with this huge amount of energy consumption in Bitcoin or crypto mining activities.
In February 2021, the electricity board of Texas was highly criticized for this mismanagement of power supply. This mismanagement was the main reason for blackouts in the state and no heat for days to support in the winter season.
A number of industries also faced a shutdown, but more importantly, hundreds of people lost their lives during this time. This was basically due to lack of heat and shortage of food supplies.
At that time, ERCOT had blamed the ongoing extreme weather conditions which are even expected to grow as a huge concern due to climate change.
People living in Texas are still highly concerned about putting more stress on the already loaded power-grid systems.
According to a report, the crypto mining hard-wares are on a run continuously. This continuous run is a major reason for this huge consumption of the power supply.
Just to give you an idea, an estimated 13 million metric tons of carbon dioxide was released by crypto mining operations for just four major cryptocurrencies between January 1, 2016, and June 30, 2018.
What ther countries have to say
In recent times, however, a number of pro-crypto regions are trying to power crypto with the help of several clean energy resources.
This is basically being done to create a low carbon economy based on energy resources that produce comparatively low levels of greenhouse gas emissions.
For example, El Salvador is also trying to power its Bitcoin and other crypto mining facilities using geothermal volcanic energy.
Francis Suarez, the mayor of Miami has also offered to set up a Bitcoin-mining solution close to a nuclear power plant in Florida. As per a report by the Latest News Today, nuclear energy is on the edge of being accepted as the best Environmental, Social and Corporate(ESG) solution in terms of consumption of energy.
Texas Government on Crypto mining
For now, there are no plans by the Texas state government to deal with possible issues that may be brought up due to this increase in electrical demand with the activities related to crypto mining.
The Texas Standard suggests that miners could be flexible to shut down their hard wares at the time of peak demand of the power supply. Also, the miners will be charged a premium per kilowatt-hour if they are willing to turn their hard wares on even during the high-demand periods.