Record High Energy Curtailments Suggests California Needs Bitcoin Mining

Bitcoin mining is being recognized as a potential solution to one of the biggest challenges in renewable energy: curtailment, where excess power generated from renewable sources like wind and solar goes to waste.

Since 2014, California alone has reportedly wasted nearly 12,500 gigawatts of renewable energy, an amount that could power every home in the U.S. for several days​.

Image Source: eia.gov

Dan Held, a Bitcoin advocate, argues that Bitcoin mining could serve as a “buyer of last resort” for this stranded energy. Mining can absorb every excess megawatt of renewable power, improving returns on investments (ROIs) for energy producers and helping to ensure the expansion of the renewable energy sector.

By converting otherwise wasted power into profit, Bitcoin mining offers a practical solution for the green energy industry​

Furthermore, Bitcoin miners can play a pivotal role in stabilizing the grid. For example, in Texas, miners collaborate with grid operators to consume excess capacity and help manage the fluctuating supply and demand of renewable energy. This model has proven effective in keeping the grid stable while increasing profitability for energy producers​

Bitcoin mining’s role in renewable energy is especially critical because it offers a scalable solution that can be replaced when long-term energy storage or better transmission infrastructure is available, ensuring a sustainable future for carbon-free energy​.

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