Bitcoin mining can be a viable solution for countries like the United Kingdom that have problems with their excessive emissions from renewable energy.
The CEO of a US-based digital goods technology company suggested that Bitcoin mining could be the best way to eliminate waste and grid congestion in renewable energy.
Bitcoin solution
Marathon Digital CEO and Chairman Fred Thiel offered a solution for grid operators and renewables struggling to deal with grid waste and congestion.
Thiel, a well-known crypto miner, suggested that Bitcoin mining could help manage grid congestion due to excess power. He expressed his opinion about the reported waste of wind farms in the United Kingdom.
The CEO of Marathon Digital criticized renewable energy operators for excessive electricity wastage and associated congestion charges, saying they should contact digital mining to resolve the issue.
Thiel added that BTC mining is one of the possible solutions that will make renewable energy economically viable.
“Grid operators and owners of renewable assets must realize that adding large emissions loads such as bitcoin mining behind the meter at renewable energy sites is the only way to eliminate grid congestion and wasted energy,” he explained.
The data showed that the cost of developing a renewable energy conversion grid in 2050 could reach more than $26 trillion. The chief executive of the digital goods company said consumers would bear the cost of development, reducing the economic burden on taxpayers.
VanEck’s Matthew Sigel agreed that more energy could be diverted to Bitcoin mining.
UK Pays £1B to Waste Record Amount of Energy
The UK Could Be Mining Bitcoin For Its Excess Wind Power, But Instead They Are Paying Wind Farm Operators A Billion Pounds A Year To Shut Down The Turbines.
I AM! 🤡 pic.twitter.com/3tNFlLcHyb
— matthew sigel, recovering CFA (@matthew_sigel) December 3, 2024
Controlling Grid Congestion
A Bitcoin miner revealed that Marathon Digital used Bitcoin mining to monetize its power.
Marathon Digital, a publicly listed company, was able to purchase Bitcoin using proceeds from convertible notes.
The reports said that many businesses in various countries are exploring how to use crypto to manage more energy, a solution that most of the British energy providers are not considering yet.
For example, the region of Bern in Switzerland has already approved a recommendation to explore Bitcoin mining to help stabilize the power grid by using more energy.
🟠Bitcoin & Canton of Bern🟠:
We successfully passed a postulat requiring the government to explore integrating Bitcoin mining into the Bern energy system. Good news: The surplus of solar energy in the Swiss summer will make Bitcoin mining more competitive globally.… pic.twitter.com/38aOu4BZtC
— Korab Rashiti 🐍 (@KorabRashiti1) November 28, 2024
The Swiss regional parliament voted for the proposal. Therefore, the Swiss government is now exploring the integration of Bitcoin mining into its energy system.
$1.3 billion in congestion costs
A Bloomberg report revealed that the United Kingdom is paying $1.3 billion in congestion charges to wind farms to encourage them to shut down their operations.
The report added that wind farms need to temporarily suspend their operations because their grid cannot cope with the excess power output.
Over the past few years, the country has increased its wind energy production capacity. Over the past five years, its offshore wind capacity has increased by 50%. Experts suggest that in the next five years, the energy used in wind farms in the country will double.
However, its grid capacity has not been able to keep up with the speed of increase in wind power generation leading to congestion problems. As a result, utilities must pay some plants to shut down while paying others to turn on.
Featured image from Getty Images, chart from TradingView