Bitcoin mining offers numerous potential use cases beyond maintaining network security and integrity, such as utilizing GPUs to power machine learning and large gaming setups. One United Kingdom-based Bitcoin advocacy organization, Bitcoin Policy UK, is advocating for its use to support sustainable grids and renewable electricity generation.
Bitcoin Mining FTW
A report released by the organization on July 10 suggested that the Bitcoin mining industry, a major purchaser of electricity, could be key to making the intermittent supply of power from renewable grids both “robust and viable.” According to the report, Bitcoin mining stands to be one of the few, if not the only, technologies that provide a “completely elastic demand for spare renewable energy.” It said this sets a “floor” price and monetizes the supply of energy that would otherwise go unutilized or even “curtailed at cost.”
It argued that Bitcoin mining could essentially require zero subsidies or payments from the government while using any and all stranded or wasted energy available.
“Bitcoin mining is the perfect technology to solve the issues we face in the viability of our energy ambitions, and it currently has zero large-scale penetration in the UK market.”
In Texas, Bitcoin mining is already in play as a flexible load. Miners provide an interruptible load that can be instantaneously shut off to respond to grid demand and repower after the demand dissipates. The report suggested that this could solve the issue of the commercial viability of the UK’s energy security strategy targets, providing assurance for renewable energy providers that there is a buyer for all the energy they produce, ensuring their projects wouldn’t go underutilized.
New Government, New Strategy
Bitcoin Policy UK is pushing for this new strategy in light of the UK elections held on July 4, in which a new Labour government took power and subsequently announced its plan to establish a National Wealth Fund worth 7.3 billion euros ($9.3 billion) to support green industries. In response to the win, the local crypto community called for a more consistent policy on crypto.
Freddie New, Bitcoin Policy UK’s co-founder and head of policy, told Cointelegraph that the organization is using this moment to advocate for good policies that “protect and preserve the rights” of the millions of UK citizens who hold Bitcoin. According to the organization’s co-founder, the previous government had “high hopes” of turning the UK into a “crypto hub” but fell short of that goal.
“During their tenure, we saw businesses unable to open or operate here, owing to poorly conceived regulation, and a series of opportunities missed, particularly in terms of understanding how Bitcoin is not merely a financial instrument for speculation.”
Untapped Potential of Bitcoin Mining
New elaborated that the Bitcoin mining industry has “considerable” untapped potential for stabilizing and monetizing sustainable power grids while reducing methane and biogas emissions if co-located on farms or near landfills. He emphasized that Bitcoin mining could play a significant role in the UK’s energy transition, offering a solution to utilize excess renewable energy and provide economic incentives for further investment in green technologies.
Bitcoin Policy UK is looking forward to working with the new government on Bitcoin-related policies. New said the organization is eager to contribute to developing a regulatory framework that supports innovation in the cryptocurrency space while ensuring robust oversight to prevent misuse.
| Benefit | Description |
|---|---|
| Elastic Demand for Spare Energy | Provides a market for excess renewable energy, preventing waste and curtailment. |
| Zero Subsidies Required | Operates without government subsidies, relying on market dynamics. |
| Grid Stability | Acts as a flexible load that can adjust based on grid demand. |
| Economic Incentives | Encourages further investment in renewable energy projects. |
| Reduction in Methane and Biogas Emissions | Potential to reduce emissions when co-located with farms or landfills. |
The call to integrate Bitcoin mining with the UK’s renewable energy grid highlights a novel approach to addressing energy challenges while supporting the cryptocurrency sector. As the UK government moves forward with its green initiatives, collaboration with organizations like Bitcoin Policy UK could pave the way for innovative solutions that benefit both the energy and crypto industries.
Featured image credit: jcomp via Freepik
Follow us for more breaking news on DMR.