Residents are concerned that the state’s electrical grid will not be able to handle the strain, despite the state’s desire to become a global hub for Bitcoin mining operations.
Texas’ electrical infrastructure will need to serve the estimated 5,000 megawatts (MW) sector in the 2023 energy demand industry, given the state’s growing migration of Bitcoin mining companies.
Currently, the Bitcoin mining business in Texas consumes between 500 and 1,000 megawatts of electricity. According to estimates, the Texas Electric Reliability Council (ERCOT) expects demand to climb fivefold by 2023 and plans to add an additional 3,000 to 5,000 MW.
This rise coincides with the Lone Star State’s intentions to host 20% of the world’s Bitcoin mining activities. Since the Chinese government banned Bitcoin mining early this year, Texas has become a popular destination for Bitcoin miners.
The state government has taken advantage of China’s consolidation to make Texas a desirable location for cryptocurrency miners, who may now take advantage of 10-year tax breaks, sales tax credits, and government-sponsored staff training.
However, some Texas citizens are concerned that the current electricity grid will be unable to be updated. In February 2021, ERCOT executives were heavily chastised when the electricity went out in the region during a severe cold spell, leaving about 5 million people without power for several days.
ERCOT’s assessment, released on November 19, failed to instill confidence that the grid’s problems have been resolved. Amal Ahmed, a reporter with the Texas Observer, tweeted recently.
Some miners have attempted to assuage neighbors’ concerns about potential resource losses. On October 21, the Texas Standard reported that several Bitcoin miners were collaborating with local energy providers to ensure grid reliability.
Meanwhile, as BTC mining operations grow ever greener, a few others strive to run utilizing totally renewable and potentially renewable energy sources such as natural gas coal.
The Texas state government has made no plans to address possible issues caused by the increased demand for electricity from crypto miners. Miners can be flexible in turning down their gear during peak demand times, as proposed by the Texas Standard or pay a premium per kilowatt.