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Forecasting energy innovation has proven to be a difficult assignment for experts. Recent estimations for the year 2050 have shown that numerous experts’ estimates were off. One of the most remarkable examples is how demand response ignores crypto mining.
Demand response is the ability of customers to alter their energy consumption in reaction to changes in the price of electricity or to incentives offered by utilities or other third parties. Demand response programs seek to reduce the need for electricity during periods of peak demand in order to reduce the strain on the power system and lower overall electricity prices.
Demand response is now going through a quiet revolution. Demand response has reportedly been a big success, far beyond projections of tens of thousands of users and taking up seven figures, according to preliminary statistics. Demand response is now much more prevalent than it was ten years ago when it was less widespread in the US domestic format.
In the UK, demand response has recently seen a sharp increase in popularity. Even brand-new words have been created to express the concept. The one million power users who signed up for the freshly launched Demand Flexibility Service are referred to as Flexers, according to Reuters. They must complete this task within the allotted window of time and with less electricity than normal.
Energy companies still don’t completely understand the psychology of the ordinary consumer, who is willing to forsake the on-demand element of turning on appliances in order to save money on high bills. Demand response’s success, in the opinion of Peter King, Global Energy and Utilities Lead at Capgemini Invent, is due to the modernization of restrictive software platforms that up until recently precluded energy organizations from taking part in demand response solutions. The development of smart meters has also had an impact on the success of demand response.
Another innovation in the energy industry is the use of crypto mining, which includes using computer power to validate and store transactions on a blockchain, in demand response.
In 2021, Marathon Digital Holdings, a Texas-based Bitcoin mining company listed on the NASDAQ, had an innovative thought. The corporation built a 280 MW wind farm in Texas, but the transmission system was not large enough to handle the whole output.
Since the wind farm provided an interruptible and consistent baseload, the crypto mine could use its energy without the need for curtailment during strong winds. This helps to keep the grid balanced and avoid grid congestion during various external demands, in addition to maintaining the wind farm’s output.
This development shows how the global energy problem has sparked a more logical and creative approach to energy. This is particularly true in Texas, where there are no market restrictions and businesspeople are urged to develop original concepts.
Chairman and CEO Fred Thiel recognize the irony of employing a technology with a large carbon footprint like Bitcoin to minimize carbon emissions and prevent the use of renewable energy sources from being reduced. Thiel, though, is optimistic about the initiative and highlights the entrepreneurial ethos of Texas.
The value of MARA’s shares decreased on January 27. During noon trading, the shares dropped as low as $8.09 before dropping 7.4% to end the day at $8.10. Recently, the shares have been evaluated by several research firms. Jefferies Financial Group decreased its price objective from $12.50 to $4.00 and changed its “buy” rating to “hold” at the same time.
Several options for electricity networks to benefit from bitcoin mining. The potential of energy suppliers to use cryptocurrency mining as a demand response mechanism to pull electricity from renewable sources when the system is at capacity is one of the many benefits of cryptocurrency mining. As a result, the production of renewable energy sources is stabilized and system congestion is decreased.
Another benefit of cryptocurrency mining is that it enables energy companies to reduce costs. Energy companies might make money by using surplus energy to mine cryptocurrencies rather than waste them.
Additionally, compared to traditional fossil fuels, bitcoin mining has the potential to be a more ecologically beneficial kind of energy. This is because it produces no emissions and can be powered by renewable energy sources, both of which help reduce the carbon footprint of the energy production sector.
Crypto mining is notorious for using a lot of energy despite the benefits. However, the industry is working to become more sustainable by using renewable energy sources and developing more energy-efficient equipment.
