Posted on 12/06/2021 7:54:53 AM PST by Pollard
AUSTIN, TEXAS – The Texas power grid is struggling with fluctuating energy prices and sporadic service, but the state’s growing bitcoin mining community believes it can help fix it.
Republican Sen. Ted Cruz agrees. “A lot of the discussion around bitcoin views bitcoin as a consumer of energy,” said Cruz at an event in October. “The perspective I’m suggesting is very much the reverse, which is as a way to strengthen our energy infrastructure.”
The grid is called ERCOT — short for the Electric Reliability Council of Texas, which is the organization tasked with operating it — and it’s fussy and temperamental.
ERCOT powers about 90% of the state, but to run smoothly, it requires a perfect balance between supply and demand. Having too much power and not enough buyers is just as bad as everyone wanting to fire up their AC units on the same day in July.
Maintaining that balance has proven to be a real challenge this year, and Texans are feeling it.
(Excerpt) Read more at cnbc.com ...
I guess I am having difficult understanding. Is the electrical grid broken? What is broken about it? How come it worked fine until fairly recently?
Couldn’t the electric company mine its own Bitcoin to reduce the cost to users and “use up” excess electricity?
Something else going on here?
It’s a weird scheme and would do nothing to fix frozen wind turbines.
Really the weather was a one-off. A once-in-a-lifetime occurrence. Like a meteorite hitting really. They really should stabilize their electrical grid if it is hanging by a thread as implied in the article, but I am thinking it probably isn’t. One thing is for sure, Bitcoin is not going to solve the problem. That is actually, in my opinion, a pretty incorrect take on the situation not knowing any more than I do.
“Couldn’t the electric company mine its own Bitcoin to reduce the cost to users and “use up” excess electricity?”
THAT IS A GREAT IDEA!!!
It worked fine while Big T was in office.
1984, 2011 and 2021 and others in the 60's and 70's.
Depends on the length of the life then. Ha! I didn’t realize, not being a Texas resident, there were system-wide issues many times over the years. Ted Cruz says “Bitcoin will fix it.” :D
So the basement dwelling nerds jamming 20 high performance graphics cards, using enough electricity to power the local Walmart, THAT’S helping the electric grid???
It isn’t broken except for the new “big freeze fee” of $25/mo. we’re now seeing on our bills.
I’m not seeing any fixing but I’d sure like an explanation why they’re building new gazebos and flower gardens.
Don’t get me started on why we were without power when the hydro plant produces enough energy for the summer tourists but couldn’t keep the winter 6% occupied homes with lights here and sent our power down south. Oh, maybe, just like our water supply and gazebo costs, we have to send our power and that $25/mo. to South TX.
*Super Bowl XLV in 2011 if you recall.
Ice and extreme cold for a week.
Are there enough Bitcoin miners in Texas to make a difference?
February of 1989 also.
In 89 regulated utilities were required to have fuel oil backup at natural gas power plants.
Those costs were in their rate base.
Doubt it. Most are in china where electric costs are low. I’m thinking the miners would want to make a deal. Give us free electric and we’ll handle your surge issues.
I don't see them shutting down for a week or more at a time. Their potential losses are astronomical.
Anyone who can buy electricity during non-peak hours is helping. This would include crypto miners who ramp up production when electricity costs are low, and people who store electrical energy. The latter group could include EV car owners who charge vehicles at night, etc.
This allows non-peak consumers to save money AND peak consumers as well, because the non-peak consumers are lowering the overall energy production costs. This is because it is expensive to ramp up production to accommodate peak demands.
That’s what I make of it. They’d be able to smooth out the highs and lows. The only problem from the crypto aspect is that when they ramp down, that could make crypto transactions take longer but I suppose someone else in the world will take up the slack. Amazing how many things crypto is finding use for and moreso, the blockchain.
Seems to me there is no problem as long as operators winterize their plant equipment before winter hits. Weather has been downright balmy here in Texas, no need for panicked, slipshod procedures.
The Texas electrical grid is Texas's responsibility. Nothing Trump did or didn't do affected the disaster of last February.
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