Renewables desperately need Bitcoin mining

If renewables are something desirable, then we need Bitcoin mining.

Yesterday, El periódico de la energía published my recent article (in Spanish) about how bitcoin mining is making wind and photovoltaic generation dispatchable.

In the article I explained how Layer1 is scaling large enough to dispatch several MW in a matter of seconds by simply turning on and off their mining hardware, as you can see in the following image

Source: Layer1

I find it strange that this kind of news doesn’t gain bigger traction in the renewable focused media used to follow energy news, although I admit that my interest on these kinds of topics is definitely greater than most.

As long as large scale electricity storage is not competitive enough, it is impossible for wind and PV generation to gain a significant percentage of the world’s generation mix. Also, as long as these two generations are not dispatchable, the electricity price for the end consumers will not decrease any time soon.

Wind and PV have no doubt the most competitive wholesale prices but their intermittency forces national grids to rely on back-up generation and transportation redundancies that significantly increase retail prices for end consumers.

UK, Italy, France and Spain have the highest with PV. Belgium has the 3rd highest percentage PV generation per capita.

One of the biggest drivers of these high consumer power costs is the intermittent nature of their generation, which requires expensive storage solutions and backup considerations.

Regardless of your opinion on Bitcoin, the market still considers it valuable. Energy companies should realize that, unless someone figures out how to kill it, it could become the perfect technology to make them dispatchable.

If we keep waiting for large scale electricity storage to be widely adopted, we will have a lot of work ahead, consider this chart:

Developing countries want to reach EU/USA wealth levels and that’s not going to happen without reaching comparative per capita electricity.

You think that your developed country has a lot of renewables? Think twice, we have merely penetrated the market:

The share is only going to grow if developing countries adopt renewables massively and that’s unlikely to happen if these technologies don’t become dispatchable shortly.

Shouldn’t energy companies give it a try?

Happy to help!

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