Leveraging Bitcoin Miners as Flexible Load Resources for Power System Stability and Efficiency

20 Pages Posted: 30 Nov 2023

See all articles by Nic Carter

Nic Carter

Castle Island Ventures

Shaun Connell

Lancium

Brad Jones

Electric Reliability Council of Texas (ERCOT)

Dennis Porter

Satoshi Action Education

Murray A. Rudd

Satoshi Action Education

Date Written: November 22, 2023

Abstract

This review examines the role of Bitcoin mining as a possible catalyst for accelerating the global shift towards clean energy and effective power grid management. Amidst the evolving landscape of energy systems and grid operations, demand response and flexible load resources are becoming crucially important. We focus on the emergence of Bitcoin mining as an important feature for industrial-scale demand response, making use of miners’ inherent characteristics of interruptibility and swift response to enhance grid flexibility. Bitcoin mining can also directly utilize stranded energy resources, suggesting it is a novel technology for improving grid efficiency and facilitating rapid growth in renewable energy production. By leveraging their unique attributes, Bitcoin miners demonstrate how they might contribute to the coming energy transition, highlighting the potency of cross-cutting financial and technological innovation in shaping a sustainable and interconnected energy framework.

Keywords: Bitcoin, controllable load, demand response, electricity demand, energy transition, ERCOT, grid resources

JEL Classification: O30,Q40

Suggested Citation

Carter, Nic and Connell, Shaun and Jones, Brad and Porter, Dennis and Rudd, Murray, Leveraging Bitcoin Miners as Flexible Load Resources for Power System Stability and Efficiency (November 22, 2023). Available at SSRN: https://ssrn.com/abstract=4634256 or http://dx.doi.org/10.2139/ssrn.4634256

Nic Carter

Castle Island Ventures ( email )

Miami, FL
United States

Shaun Connell

Lancium ( email )

TX
United States

Brad Jones

Electric Reliability Council of Texas (ERCOT) ( email )

7620 Metro Center Drive
Austin, TX 78744
United States

Dennis Porter

Satoshi Action Education ( email )

25 Alderney Drive
Unit 208
Dartmouth, Nova Scotia B2Y 2N4
Canada

Murray Rudd (Contact Author)

Satoshi Action Education ( email )

25 Alderney Drive
Unit 208
Dartmouth, Nova Scotia B2Y 2N4
Canada

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
2,199
Abstract Views
6,633
Rank
12,979
PlumX Metrics