Texas was under a wave of bitcoin mining influx. Therefore, its energy infrastructure will have to meet the expected additional capacity of the industry in electricity in the amount of 5,000 megawatts (MW) by 2023.
At the moment, mining in Texas consumes from 500 to 1000 MW of electricity. According to the expectations of the Texas Electric Reliability Council (ERCOT), demand is expected to increase 5-fold by 2023, according to approximate calculations, an additional 3,000-5,000 MW will be required.
This increase is due to the gradual influx of 20% of the world’s mining operations. Texas became such a place after the Chinese government imposed a ban on bitcoin mining earlier this year.
The state government took advantage of the situation in China by creating a haven for miners in its state, providing them with tax cuts for 10 years, various benefits, and state sponsorship.
However, there are concerns that the current power grid may not survive, and its improvements are not possible. The management of the ERCOT State network was scrutinized in February 2021, when the region experienced power outages during a severe cold snap, and about 5 million residents were without electricity for several days.
The report published in ERCOT on Friday did not say that the problems had been solved. Texas Observer reporter Amal Ahmed tweeted on Monday in which he said that seasonal estimates indicate that the approach to power plants, even in extreme conditions, has not changed.
Some miners switched to private electricity suppliers for a more stable network. Several companies in the future want to work only with renewable resources or with alternative energy sources, for example, natural gas flare installations, as BTC mining operations are becoming more environmentally friendly.
At the moment, the state government has not proposed a solution to the problem with the power grids with a possible increase in the flow of mining on their territory. According to the Texas Standard, miners can flexibly turn off their equipment during peak demand periods or charge per kilowatt-hour if they want to stay on during peak demand periods.