Tech
Texas crypto mining draws criticism over high power bills, environmental issues
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The bitcoin mining industry in Texas was once heralded as a Meccas due to the state’s cheap power and regulatory friendliness. However, the industry is now under scrutiny amid concerns over environmental impacts and escalating energy costs.
Following China’s ban on cryptocurrency mining in 2021, Texas witnessed a significant influx of mining operations, attracted by the state’s advantageous conditions. However, this surge has led to increased examination from both the public and officials regarding its effect on electricity expenses and environmental well-being.
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In Granbury, Texas, a local power plant’s bitcoin mining operation has sparked considerable outcry. Continuous noise from the site is causing residents to experience sleep disturbances, migraines and a notable decrease in local wildlife.
“My citizens are suffering from the operation,” Hood County Constable John Shirley said.
Efforts to legislate the industry’s electricity usage faced obstacles last year when a proposed bill aimed at restricting crypto mining during peak energy hours failed to progress through committee.
Correspondence from the Electric Reliability Council of Texas (ERCOT) to the Environmental Protection Agency (EPA) highlighted that the state’s seven largest cryptocurrency mining operations consume more than 1,000 megawatts of power, sufficient to power 830,000 homes.
Ed Hirs, a University of Houston energy expert, discussed with Wired the compounded challenge of Texas’ aging fossil fuel power plants and the additional pressure from large-scale mining operations. He cautioned that such factors are exacerbating grid instability.
Federal lawsuits
In response to a federal request for detailed energy-use data, February saw the Texas Blockchain Council and Riot Platforms initiate legal action against the government, asserting that the inquiry could detrimentally affect businesses. Subsequently, a judge ordered a halt to data collection, with an agreement from the government to discard any information already acquired.
Gov. Greg Abbott has backed the industry as a key to grid reliability, suggesting that miners could utilize renewable energy during low-demand periods to enhance the profitability of wind and solar projects. Conversely, they would power down in exchange for compensation during high-demand times. Critics, however, contend that such operations burden the grid and provide limited advantages, often at the expense of taxpayers.
LAUREN TAYLOR
IN TEXAS, THE ONCE-WELCOMED BITCOIN MINING INDUSTRY FACES BACKLASH DUE TO RISING ENERGY PRICES AND ENVIRONMENTAL CONCERNS.
FOLLOWING CHINA’S 2021 BAN ON CRYPTO MINING, TEXAS, WITH ITS CHEAP POWER AND FAVORABLE REGULATIONS, SAW A SURGE IN MINING OPERATIONS.
HOWEVER, RESIDENTS AND POLITICIANS ARE NOW SCRUTINIZING THE INDUSTRY’S IMPACT ON ENERGY COSTS AND THE ENVIRONMENT.
LAST YEAR A BITCOIN MINING OPERATION AT A GRANBURY, TEXAS POWER PLANT CAUSED UPROAR. RESIDENTS HAVE REPORTED NON-STOP NOISE, LEADING TO SLEEPLESS NIGHTS, MIGRAINES, AND DISAPPEARING WILDLIFE. THE COUNTY CONSTABLE SAYS HIS CITIZENS ARE SUFFERING FROM THE OPERATION.
LAST YEAR, TEXAS LAWMAKERS INTRODUCED A BILL THAT WOULD RESTRICT CRYPTO MINING DURING PEAK ENERGY HOURS. HOWEVER THAT BILL FAILED FAILED IN COMMITTEE.
LETTERS TO THE ENVIRONMENTAL PROTECTION AGENCY FROM THE ELECTRIC RELIABILITY COUNCIL OF TEXAS INDICATE THAT THE SEVEN LARGEST CRYPTOCURRENCY MINERS USE OVER 1-THOUSAND MEGAWATTS OF POWER – ENOUGH TO SUPPLY ELECTRICITY TO 830-THOUSAND HOMES.
IN AN INTERVIEW WITH WIRED, ED HIRS, AN ENERGY EXPERT FROM THE UNIVERSITY OF HOUSTON, WARNS THAT THE AGING OF TEXAS’S FOSSIL FUEL POWER PLANTS COMBINED WITH ALLOWING LARGE-SCALE MINING FACILITIES TO DRAW HEAVILY FROM THE GRID WILL ONLY WORSEN THE SITUATION AND LEAD TO MORE INSTABILITY.
LAST MONTH THE TEXAS BLOCKCHAIN COUNCIL AND RIOT PLATFORMS SUED THE FEDERAL GOVERNMENT OVER A REQUEST FOR DETAILED ENERGY USAGE DATA, CLAIMING IT COULD HARM BUSINESSES. A JUDGE HALTED DATA COLLECTION, WITH THE GOVERNMENT AGREEING TO DESTROY ALREADY GATHERED INFORMATION.
GOVERNOR ABBOTT ENDORSED THE INDUSTRY AS A GRID RELIABILITY SOLUTION. HE ARGUES THAT DURING TIMES OF LOW DEMAND, MINERS WOULD USE RENEWABLE ENERGY SOURCES, BOOSTING THE PROFITABILITY OF WIND AND SOLAR PLANTS. ADDITIONALLY, IN PERIODS OF HIGH DEMAND, THEY AGREE TO SHUT DOWN THEIR OPERATIONS IN RETURN FOR A FEE. CRITICS ARGUE THE OPERATIONS STRAIN THE GRID AND OFFER MINIMAL BENEFITS, OFTEN AT TAXPAYERS’ EXPENSE.
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