Crypto & ERCOT Demand Response

What is happening? An October 12th letter from Senator Warren to ERCOT seeks information about crypto miners curtailing operations during periods of high demand on the grid. The letter also seeks information on:

• the electricity consumption of the Texas cryptomining industry in 2022, including how many tons of carbon dioxide emissions it produced;
• which cryptomining companies have signed power curtailment agreements with ERCOT;
• how much miners are paid hourly to curtail their energy consumption;
• and the average cost of electricity to consumers during times when crypto miners are being paid to curtail.

Why is this important? The letter says that 7 large crypto mining operations use 1,045 megawatts (MW) of electric production capacity – enough capacity to power a city of 830,000 residences. This amount is expected to rise by 230% to 2,399. By 2023, it is estimated that 20% of the world’s crypto miners will be in Texas.

Utility Dive | Sen. Warren leads probe of Bitcoin impact on Texas power grid, ERCOT use of demand response ‘subsidies’