Summary
- The Bitcoin Policy Institute, or BPI, said Scotland should use surplus wind-generated electricity for Bitcoin mining to improve grid efficiency.
- The report said Bitcoin mining facilities are well suited to use excess electricity because they can be shut down or restarted easily depending on power supply conditions.
- BPI said annual management costs tied to U.K. grid constraints exceed 1 billion pounds, and argued that using mining facilities could reduce part of that expense.
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A proposal has emerged in the U.K. to use surplus wind power that cannot be transmitted because of grid bottlenecks for Bitcoin mining, with the aim of improving grid efficiency.
CoinDesk reported on November 14 that the Bitcoin Policy Institute, or BPI, recently proposed in a report using surplus wind power in Scotland for Bitcoin mining.
Scotland has been rapidly expanding its wind generation capacity, but lacks sufficient transmission infrastructure to send that electricity to England. As a result, grid operators are compensating wind farms to cut output while also paying gas-fired power plants in other regions to increase generation.
BPI said Bitcoin mining facilities could help ease the problem. Unlike conventional data centers, they can be shut down or restarted more easily depending on power supply conditions, making them well suited to use excess electricity.
According to a survey of 10 mining companies cited in the report, those facilities used no electricity for 5% to 31% of total operating time depending on grid conditions.
BPI said annual management costs tied to U.K. grid constraints exceed 1 billion pounds ($1.32 billion), and argued that using mining facilities could reduce part of that expense.
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