Bitcoin Mining Helps Stabilize Grids and Reduce Costs, Researcher Claims

According to an extensive analysis by independent researcher Daniel Batten, Bitcoin mining operations enhance electrical grids instead of causing instability, and they contribute to lowering consumer electricity expenses through demand flexibility and grid services. This research directly counters ongoing misconceptions about the energy implications of the industry.

The study, named “Common Bitcoin Energy Misconceptions,” disassembles numerous widely held beliefs regarding the resource consumption and environmental impact of Bitcoin mining.

Batten provides evidence from peer-reviewed research and actual grid data that refutes claims indicating that the technology places a burden on power systems and increases consumer costs.

https://t.co/HQ93NP9I92

— Daniel Batten (@DSBatten) January 3, 2026

Grid Stabilization Through Flexible Demand

Several independent studies affirm Bitcoin mining’s ability to stabilize electrical grids owing to its interruptible nature, especially in networks that are moving toward greater reliance on variable renewable energy sources such as solar and wind.

A whitepaper cited by Batten from Duke University energy specialists concluded that Controllable Load Resources, which include Bitcoin mining operations, assist in stabilizing grids and postponing the expenses associated with costly infrastructure enhancements.

He also referenced findings from ERCOT, the Texas grid that supports the largest concentration of Bitcoin mining worldwide, which indicate primarily stabilizing effects from near-daily Frequency Regulation and Demand Response services.

Former ERCOT interim CEO Brad Jones summarized the results: “[Bitcoin mining operations] have figured out how to enter the market and utilize some of that excess wind during low-demand periods. Then it can scale down whenever we require power for other consumers… And if a generator goes offline, it can swiftly respond to that frequency disruption and help us balance our grid more effectively.“

He mentioned that Texas recorded one mild localized destabilization event involving Bitcoin mining on April 25, 2024, while multiple significant stabilization occurrences took place throughout the same multi-year timeframe, including emergency grid support during the July 2022 heatwave.

Consumer Cost Reduction Through Multiple Mechanisms

In contrast to assertions that Bitcoin miners inflate residential electricity costs, data provided by Batten from Texas between 2021 and 2024 reveals that overall electricity expenses paid by residential customers increased by 23.8%, or 7.0% when adjusted for inflation, compared to the national average rise of 24.67%.

The analysis identifies five ways in which Bitcoin mining lowers consumer expenses:

• Monetizing renewable energy that would otherwise go to waste
• Fostering competitive markets for Ancillary Services
• Removing the necessity for additional gas peaker plants
• Minimizing curtailment fees
• Postponing grid infrastructure costs.

Jones remarked, “the ability for [Bitcoin Mining] to satisfy our ancillary services at the most affordable cost means lower expenses for all consumers in the State of Texas.”

Following the blackouts in Texas in 2021, ERCOT initially considered constructing gas peaker plants at an estimated cost of $18 billion, but instead incorporated Bitcoin miners as a flexible load capable of promptly reducing consumption during periods of grid stress.

Two documented international examples illustrate direct price effects.

Residents of Norway in September 2024 faced a 20% rise in electricity prices after Bitcoin mining operations ceased.

Source: CNBC (Screenshot)

Moreover, CNBC reported that incorporating Bitcoin mining into a rural microgrid in Kenya “reduced the price of power from 35 cents per kilowatt hour to 25 cents per kWh” by monetizing previously wasted hydroelectric energy.

Transaction Metrics and Environmental Performance

Batten’s document also tackles the per-transaction energy claim, asserting that this metric “is dismissed in four peer-reviewed studies (Masanet et al., 2019; Dittmar et al., 2019; Sedlmeir et al., 2020; and Sai and Vraken, 2023) as well as by Cambridge University because Bitcoin’s resource utilization does not stem from its transactions.“

Cambridge data from 2025 indicated that earlier estimates exaggerated Bitcoin’s electronic waste by 1204%, revealing an actual annual eWaste of 2.3 kilotons instead of the claimed 30 kilotons.

Bitcoin mining has surpassed the 50% sustainable energy threshold according to reliable third-party data, exceeding the global average grid mix of roughly 40% renewable energy.

Cambridge estimates current Bitcoin mining emissions at 39.8 MtCO2e attributable to greenhouse gas emissions from scope-2 electricity usage, with 5.5% of annual carbon debt offset through methane mitigation from oil and gas operations.

Bitcoin’s mining difficulty is once again edging closer to uncharted territory as the network prepares for its first adjustment of 2026. #Bitcoin #Mininghttps://t.co/Ez9uxnC3rE

— Cryptonews.com (@cryptonews) December 29, 2025

Importantly, according to a recent report from Cryptonews, Bitcoin’s mining difficulty rose to 148.2 trillion in the final adjustment of 2025, with forecasts suggesting 149 trillion by January 8, 2026, as average block times remain around 9.95 minutes.

Despite the increasing difficulty, Russian President Putin claimed in December that discussions are taking place between the US and Russia regarding joint management of Ukraine’s Zaporizhzhia Nuclear Power Plant for Bitcoin mining.

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