Texas’ electrical infrastructure will have to sustain the industry’s estimated 5,000 megawatts (MW) of increased power demands by 2023, as the state anticipates a rapid influx of Bitcoin mining facilities.
In Texas, the Bitcoin mining business consumes between 500 and 1,000 megawatts of electricity.
According to sources, the Electric Reliability Council of Texas (ERCOT) forecasts a fivefold rise in demand by 2023 and has planned an extra 3,000 to 5,000 MW.
Texas becomes the go-to state for miners
This growth comes as Texas prepares to become home to 20% of all Bitcoin mining operations in the globe. Since the Chinese government prohibited Bitcoin mining early this year, Texas has become the go-to location for Bitcoin miners.
Texas has taken advantage of China’s crackdown by establishing a refuge for crypto miners, who may now take advantage of a 10-year tax break, sales tax credits, and state-sponsored labor training.
However, some Texas citizens are anxious that the current electrical grid will not be improved. In February 2021, ERCOT’s management of the state’s electrical system came under fire after blackouts afflicted the region in the face of an unusually cold period that left about 5 million people without power for days.
The grid faults have not been resolved, per a report released by ERCOT on Nov. 19. Amal Ahmed, a reporter with the Texas Observer, tweeted on November 22:
“Unsurprisingly, ERCOT’s new seasonal assessment report (essentially, a forecast) appears to imply that the agency hasn’t adjusted its approach to truly prepare for extremes.”
Miners to pay extra to stay on
Some miners have tried to assuage neighbors’ concerns about the potential resource drain. Based on the Texas Standard, some Bitcoin miners have been collaborating with local power companies to maintain grid reliability.
Meanwhile, as BTC mining operations become more environmentally friendly, others want to run utilizing 100% renewable and viable alternative energy sources such as natural gas flares.
The Texas state government has yet to take any steps to address potential concerns raised by increased crypto mining power demand. The Texas Standard reports that miners could opt to turn off their equipment during peak demand hours or pay a premium per kilowatt-hour to stay on.
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