This activity allows the State to save $ 18 billion and stabilize its electricity network. This is revealed by a new report by Digital Assets Research Institute (DARI).
These results arise while Texas is struggling with extreme weather conditions. The winter storm of 2021, for example, caused generalized electricity failures and economic losses.
Bitcoin mining: a cheaper and greener network solution
Historically, network operators were based on peak gas power plants and expensive installations that were involved during request peaks. These factories remain inactive most of the year and consume a lot of money. It emits large amounts of greenhouse gases.
Dari’s research highlights Bitcoin’s mining as a more effective solution. Thus, Bitcoin minors voluntarily reduce their energy consumption during peaks of demand to help stabilize the network. This approach has replaced the need for new peak gas factories. This includes the proposed investment of $ 10 billion per Berkshire Hathaway Energy. This would still have increased electricity costs for Texans. Here is a graphic of generation capacity with and without Bitcoin.
Source: Direct science
A clearer and cleaner solution
Bitcoin minors work all year round, generating income while remaining flexible enough to reduce their energy consumption if necessary. This flexibility allows the network to incorporate more renewable energies, such as wind and solar, which are often underused because of their intermittent nature. By reducing its dependence on advanced gas production plants, Texas has also reduced its greenhouse gas emissions, thus avoiding hundreds of thousands of tonnes of carbon dioxide per year.
While some criticisms have questioned the role of Bitcoin’s mining, the ECOT (the Electric Liabibility Council of Texas) and studies evaluated by peers confirm its advantages. Supporters, such as Senator Ted Cruz, qualified Texas as “Oasis for Bitcoin” because of its low -cost energy and its policies favorable to companies. Cruz stressed that Bitcoin mining stabilizes not only the network, but also creates jobs, keeping Texas “ahead of the game”.
New @Dari_org Report: Texas was faced with an invoice of $ 18 billion for new peak gas factories – expensive backups being used only a few hundred hours a year. Then, Ercot found a better option: Bitcoin mining as a flexible load. Here’s how it saved billions to Texans:
pic.twitter.com/mgiz3iephh
– Sam Edwards (@samedwardsiv) January 22, 2025
Resistance of large actors
Despite these advantages, the industry comes up against resistance. Berkshire Hathaway Energy, for example, pressure against Bitcoin mining in favor of building more gas cutting factories. Some legislators have also expressed their skepticism as for mining as an alternative, but Ercot’s data tell a different story: Bitcoin mining has effectively balanced the supply and demand for electricity, thus avoiding future breakdowns.
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