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Texas power grid avoids crisis as Bitcoin mining supports ERCOT margins
ERCOT logged a peak demand of 91,308 megawatts on July 22, with more than 20 gigawatts of headroom and no call for conservation.
Texas electricity demand hit record highs twice in two days last week, but ERCOT still operated with substantial spare capacity at the peak, helped in part by how Bitcoin miners factor into the grid’s voluntary curtailment setup, according to CryptoSlate. ERCOT served a preliminary 91,308 megawatts around 5 p.m. on July 22, after demand reached 87,403 megawatts the prior day and surpassed the 85,508-megawatt mark last held since Aug. 10, 2023. In neither case did regulators or ERCOT issue an appeal for energy conservation, and the system carried more than 20 gigawatts of headroom at peak. CryptoSlate reports ERCOT has built comfort into its planning using voluntary curtailment agreements with large customers, described by the Energy Information Administration as primarily covering crypto mining facilities along with some data centers and industrial plants. The grid operator has also told regulators it expects demand could roughly double within six years to 175,000 megawatts, and that a longer term forecast reaching about 367,790 megawatts by 2032 is being reworked after regulators deemed it flawed. The piece also links the structure to miner economics, noting that weaker mining revenue can make shutdowns cheaper because the Bitcoin forgone during curtailment is worth less, while price recoveries can raise the electricity price at which curtailment becomes less attractive. CryptoSlate points to Riot Platforms, which during the August 2023 heat wave said it curtailed more than 95% of power usage during peak demand periods, receiving $24.2 million in ERCOT curtailment credits plus $7.4 million from a demand response program.
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