daz on Nostr: Put simply, Bitcoin Miners are the ideal customer for energy grids. 1. Grids are ...
Put simply, Bitcoin Miners are the ideal customer for energy grids.
1. Grids are built for maximum peak demand. However, maximum peak demand occurs within a fraction of any given day and a fraction of any given season. Maximum demand also represents your maximum billable revenue source. The opportunity lies between the maximum profitable operating zone and the efficient operating region of the generators, above the normal demand threshold.
2. Increases in renewables are impacting grid stability. Solar penetration is causing what is known as the Duck-Curve Effect (see attached). Too much solar generation, where there is not enough load, causes instability in the heartbeat (frequency) of the grid. Rotating machines create the frequency, but they need sufficient load to operate effectively. Too much solar puts pressure on this system. Bitcoin Mining is one of the only completely flexible load centers that can soak up this excess generation and entirely switch off as required with little effect on the broader bitcoin network.
3. Bitcoin Miners can help stabilize wholesale energy markets. Quite often, we experience excess renewables capacity that exceeds our billable demand. The effects on the wholesale market often see the bid-price for energy swing negative, meaning generators are actually being charged to produce energy. The inverse is also true when demand exceeds generation capacity. Bitcoin Mining, as a flexible and controllable demand-side operator, can very quickly ramp-up load to provide a revenue source for excess capacity and ramp-down to provide this excess and controllable demand back to the grid in peak demand periods. This smooths out volatility in generation bid-price and aids operators in better forecasting demand and generation.
4. Monetization of capital projects. Energy projects are extremely capital-intensive, often relying on government-funded programs, partnerships, rebates, and subsidies to get them off the ground. Often, it is the connection of the energy source to the transmission network that incurs significant costs. Bitcoin Mining operators are partnering with these projects all throughout the world to provide them with a direct monetization stream for their energy. Never before have we been able to bring profitable energy consumers directly to the energy source, and at the scale with which Bitcoin Miners are able to deliver it. Bitcoin Miners are assisting these projects to build out in stages, bringing a revenue source early within the project lifecycle. When the services of the miners are no longer needed, when there is sufficient competition for the energy they are using, or when the economics no longer make sense, they pick up their containers and move on to the next energy source.
Understanding Bitcoin Mining will be crucial for grid operators and generators into the future.
Reach out if you would like to know more.
Published at
2024-03-30 08:10:07Event JSON
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"content": "Put simply, Bitcoin Miners are the ideal customer for energy grids.\n\n1. Grids are built for maximum peak demand. However, maximum peak demand occurs within a fraction of any given day and a fraction of any given season. Maximum demand also represents your maximum billable revenue source. The opportunity lies between the maximum profitable operating zone and the efficient operating region of the generators, above the normal demand threshold. \n\n2. Increases in renewables are impacting grid stability. Solar penetration is causing what is known as the Duck-Curve Effect (see attached). Too much solar generation, where there is not enough load, causes instability in the heartbeat (frequency) of the grid. Rotating machines create the frequency, but they need sufficient load to operate effectively. Too much solar puts pressure on this system. Bitcoin Mining is one of the only completely flexible load centers that can soak up this excess generation and entirely switch off as required with little effect on the broader bitcoin network. \n\n3. Bitcoin Miners can help stabilize wholesale energy markets. Quite often, we experience excess renewables capacity that exceeds our billable demand. The effects on the wholesale market often see the bid-price for energy swing negative, meaning generators are actually being charged to produce energy. The inverse is also true when demand exceeds generation capacity. Bitcoin Mining, as a flexible and controllable demand-side operator, can very quickly ramp-up load to provide a revenue source for excess capacity and ramp-down to provide this excess and controllable demand back to the grid in peak demand periods. This smooths out volatility in generation bid-price and aids operators in better forecasting demand and generation.\n\n4. Monetization of capital projects. Energy projects are extremely capital-intensive, often relying on government-funded programs, partnerships, rebates, and subsidies to get them off the ground. Often, it is the connection of the energy source to the transmission network that incurs significant costs. Bitcoin Mining operators are partnering with these projects all throughout the world to provide them with a direct monetization stream for their energy. Never before have we been able to bring profitable energy consumers directly to the energy source, and at the scale with which Bitcoin Miners are able to deliver it. Bitcoin Miners are assisting these projects to build out in stages, bringing a revenue source early within the project lifecycle. When the services of the miners are no longer needed, when there is sufficient competition for the energy they are using, or when the economics no longer make sense, they pick up their containers and move on to the next energy source.\n\nUnderstanding Bitcoin Mining will be crucial for grid operators and generators into the future.\n\nReach out if you would like to know more. https://image.nostr.build/2e140f6986ade5a1515907648d0bd61c05aa3e439190cc6621e6574b755a3a3d.jpg ",
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