Crypto Mining brings stability to networks, prevents waste of renewable energy
Predicting future energy advancements has been a tricky business for experts. Recent predictions for the year 2050 have shown some experts to be off the mark in their predictions. One of the most notable examples is the lack of attention given to crypto mining in demand response.
Demand response refers to the ability of customers to adjust their electricity consumption in response to changes in the price of electricity or incentives offered by utilities or other third parties. The goal of demand response programs is to reduce electricity needs during peak demand periods, which can help reduce pressure on the power grid and reduce overall electricity costs.
The need to reduce energy costs
A quiet revolution is underway in the field of response to request. Initial data shows that demand response has been a resounding success with seven-digit adoption, far exceeding the predicted tens of thousands. This is a significant change from a decade ago when demand response was not as popular in the domestic format in the United States.
In the UK, demand response has recently made a dramatic breakthrough into public consciousness. The concept has even made its way into the lexicon of new words. Last month, Reuters reported that Flexers are the one million electricity consumers who have signed up for the new demand-side flexibility service. This forces them to use less than their normal energy consumption in pre-notified time slots.
Energy companies have not fully understood the psychology of ordinary consumers, as they are willing to sacrifice the on-demand nature of appliance ignition in order to save money on high bills. Peter King, global head of energy and utilities at Capgemini Invent, attributes the success of demand response to the overhaul of rigid software platforms that previously prevented energy companies from getting involved in response offerings. on demand. Additionally, the rise of smart meters has also played a role in the success of demand response.
Crypto Mining to the rescue
Another innovation that has been seen in the energy industry is the use of crypto-mining, the process of using computing power to verify and record transactions on a blockchain, in response to demand.
In 2021, Marathon Digital Holdings, a NASDAQ-listed company Texas Bitcoin Mining Company, had an interesting idea. The company located a wind farm in Texas with a generating capacity of 280 MW, but the transmission system was unable to bring all the generation to the system.
By being an interruptible and stable base load, the crypto mine could extract power from the wind farm and avoid the need for curtailment when the wind was at full tilt. This not only stabilizes the production of the wind farm, but also helps to avoid grid congestion and balancing problems during different external loads.
This innovation shows how the energy crisis has led to a more practical and creative approach to energy. This is especially true in Texas, where the market is unregulated and entrepreneurs are encouraged to find new solutions.
Chairman and CEO Fred Thiel recognizes the irony of bitcoin, a technology that has a large carbon footprint, used to save carbon and avoid the reduction of renewable energy. However, Thiel remains optimistic about the business and points to the entrepreneurial spirit found in Texas.
MARA experienced a decline in its stock price on Friday, January 27. The shares fell 7.4% to close at $8.10 after trading at $8.09 at midday. The shares have been rated by several research firms recently. Jefferies Financial Group downgraded its rating from “buy” to “hold” and lowered its price target from $12.50 to $4.00.
Crypto mining can have several benefits for power grids. One benefit is that crypto mining can be used as a demand response tool, allowing energy companies to draw power from renewable sources when the grid is at full capacity. This stabilizes the production of renewable energy sources and avoids grid congestion.
Another benefit of crypto mining is that it can help reduce costs for energy companies. By using excess energy to mine cryptocurrencies, energy companies can turn otherwise wasted energy into a source of revenue.
Additionally, crypto mining also has the potential to be a more sustainable energy source than traditional fossil fuels. This is because it produces no emissions and can be powered by renewable energy sources, helping to reduce the carbon footprint of power generation.
Despite the benefits, crypto mining is known to have high power consumption. Yet the industry is striving to become more sustainable by using renewable energy sources and developing more energy-efficient hardware.
BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.
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