Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
US energy organization cautions of excessive demand as ERCOT evaluates cryptocurrency initiatives.
The North American Electric Reliability Corporation (NERC), a nonprofit organization that supervises regional entities dedicated to energy reliability, has published its yearly long-term reliability evaluation of the United States electrical grid. It has recognized extensive regions of the United States and Canada as areas with high or elevated risks concerning energy reliability. These regions include Texas, where the cryptocurrency mining sector is aiming to grow.
Both development and demand are increasing “more rapidly than at any point in the last five or more years.” New initiatives are being proposed at a pace that challenges operator management, and the industry is experiencing pressure from rising energy demands and the adequacy of the transmission system, according to the report.
The situation is further complicated by the policies of the United States Environmental Protection Agency aimed at decreasing carbon emissions, as noted by the National Rural Electric Cooperative Association (NRECA) in a statement regarding the report. NRECA CEO Jim Matheson remarked:
“NERC’s latest assessment presents another bleak outlook for our nation’s energy future as electricity demand surges and the availability of consistent generation diminishes. […] Without a significant change in state and federal energy policy, this is the reality we will confront for years ahead.”
Related Posts
Nine states experienced rolling blackouts in December 2022, Matheson added.
According to the report, crypto mining has a distinctive role in this context. It possesses the ability to adjust its operations and can relocate or cease operations as energy prices fluctuate. This can pose challenges for energy providers in terms of planning and development.
Related: ‘Don’t Mess with Texas Innovation’ — Advocates criticize bill removing crypto mining incentives
The Texas grid operator, Electric Reliability Council of Texas (ERCOT), has sanctioned planning studies for grid connections for 9 gigawatts (GW) of power and is evaluating requests for an additional 41 GW. One gigawatt can supply energy to nearly 700,000 households for a year, based on one estimate.
Magazine: $3.4B of Bitcoin in a popcorn tin: The Silk Road hacker’s story
