Texas Bitcoin Dreams Dampened by Grid Forecast
Submitted by MAGA Student
Posted 8 days ago
Breaking news: Texas' Bitcoin Mining Dreams May Be Dampened by Grid Operator's Forecast
Texas' electricity grid operator, the Electric Reliability Council of Texas (ERCOT), has revealed its new five-year forecast, which could potentially dampen the state's Bitcoin mining dreams.
During a state senate committee hearing earlier this week, ERCOT officials testified that cryptocurrency mining and artificial intelligence (AI) data centers could impact the reliability of the state's power grid.
ERCOT CEO Pablo Vegas told the committee that, based on ERCOT's latest five-year forecast, power grid demands are expected to nearly double by 2030.
"That number increased from 110 to 150 [gigawatts]," Mr. Vegas told the committee. "Going from 80 to 85 gigawatt range where we are today to 150 in 2030 is almost doubling of the total peak demand over a six-year period, effectively."
He said the expected demand is significantly higher than ERCOT previously estimated.
ERCOT says the state's population increase and normal business growth are contributing factors to higher power demands but added that crypto mining and AI data centers would be responsible for approximately half of the growth.
A single "AI Google search" pulls as much as 30 times more power than a traditional Google search, he said.
After Wednesday's committee hearing, Lt. Gov. Dan Patrick expressed his concerns on social media.
"Really, nobody should be surprised at the expected growth and demand on the ERCOT grid," Mr. Hirs said on June 14. "That the senators are surprised really is just indicative of their lack of attention to the most critical part of the Texas infrastructure."
Mr. Hirs said it is important to differentiate between the operations of AI data centers and cryptocurrency miners.
"The data centers are part of business and commerce," he said. "Crypto miners are directly taking money away from other ERCOT customers to produce their own profits."
"Keep in mind, China threw out the cryptocurrency miners years ago, and they found a welcome home in Texas," he said, adding that he believes these operations are often used to facilitate black market transactions and nontax transactions and reduce the cost of money laundering for drug traffickers and human traffickers.
According to ERCOT's Independent Market Monitor, last year, ERCOT's power-sourcing rules cost Texans more than $12 billion in overcharges.
As for shoring up the grid, Mr. Hirs says it's out of the state's hands.
"Texas as a state is not empowered to build new power plants," he said, and neither does ERCOT, which is basically a "traffic cop that directs electricity around the grid."
He said it depends on power companies investing in new power plants, but even if they started building now, it would take years to bring them online. If, for example, NRG Energy replaced a current site that already had interconnection hookups, it could potentially be connected within two years, Mr. Hirs said.
"Otherwise, we are looking at four to five years if we started today," he said.
This news comes as a blow to Texas' Bitcoin mining industry, which has been growing rapidly in recent years. The state's cheap electricity and favorable regulatory environment have made it an attractive destination for Bitcoin miners.
However, this growth has not been without controversy. Critics have raised concerns about the environmental impact of Bitcoin mining, as well as its potential to strain the state's power grid.
This latest forecast from ERCOT will only add fuel to those concerns. It remains to be seen how the state's Bitcoin mining industry will respond to this news.
Stay tuned for more updates on this developing story.
Sources:
endtimeheadlines.org
theepochtimes.com
redstate.com
Texas' electricity grid operator, the Electric Reliability Council of Texas (ERCOT), has revealed its new five-year forecast, which could potentially dampen the state's Bitcoin mining dreams.
During a state senate committee hearing earlier this week, ERCOT officials testified that cryptocurrency mining and artificial intelligence (AI) data centers could impact the reliability of the state's power grid.
ERCOT CEO Pablo Vegas told the committee that, based on ERCOT's latest five-year forecast, power grid demands are expected to nearly double by 2030.
"That number increased from 110 to 150 [gigawatts]," Mr. Vegas told the committee. "Going from 80 to 85 gigawatt range where we are today to 150 in 2030 is almost doubling of the total peak demand over a six-year period, effectively."
He said the expected demand is significantly higher than ERCOT previously estimated.
ERCOT says the state's population increase and normal business growth are contributing factors to higher power demands but added that crypto mining and AI data centers would be responsible for approximately half of the growth.
A single "AI Google search" pulls as much as 30 times more power than a traditional Google search, he said.
After Wednesday's committee hearing, Lt. Gov. Dan Patrick expressed his concerns on social media.
"Really, nobody should be surprised at the expected growth and demand on the ERCOT grid," Mr. Hirs said on June 14. "That the senators are surprised really is just indicative of their lack of attention to the most critical part of the Texas infrastructure."
Mr. Hirs said it is important to differentiate between the operations of AI data centers and cryptocurrency miners.
"The data centers are part of business and commerce," he said. "Crypto miners are directly taking money away from other ERCOT customers to produce their own profits."
"Keep in mind, China threw out the cryptocurrency miners years ago, and they found a welcome home in Texas," he said, adding that he believes these operations are often used to facilitate black market transactions and nontax transactions and reduce the cost of money laundering for drug traffickers and human traffickers.
According to ERCOT's Independent Market Monitor, last year, ERCOT's power-sourcing rules cost Texans more than $12 billion in overcharges.
As for shoring up the grid, Mr. Hirs says it's out of the state's hands.
"Texas as a state is not empowered to build new power plants," he said, and neither does ERCOT, which is basically a "traffic cop that directs electricity around the grid."
He said it depends on power companies investing in new power plants, but even if they started building now, it would take years to bring them online. If, for example, NRG Energy replaced a current site that already had interconnection hookups, it could potentially be connected within two years, Mr. Hirs said.
"Otherwise, we are looking at four to five years if we started today," he said.
This news comes as a blow to Texas' Bitcoin mining industry, which has been growing rapidly in recent years. The state's cheap electricity and favorable regulatory environment have made it an attractive destination for Bitcoin miners.
However, this growth has not been without controversy. Critics have raised concerns about the environmental impact of Bitcoin mining, as well as its potential to strain the state's power grid.
This latest forecast from ERCOT will only add fuel to those concerns. It remains to be seen how the state's Bitcoin mining industry will respond to this news.
Stay tuned for more updates on this developing story.
Sources:
endtimeheadlines.org
theepochtimes.com
redstate.com
