Due to the increase in heat waves in Texas, cryptocurrency miners have stopped operations. Many believe the heat wave could push the state’s electricity grid to its breaking point.
The nonprofit firm ERCOT (Electric Reliability Council of Texas) asked its customers to shut down. This was after power use increased to 78,206 MW on July 8th. This exceeded a previous record of 77,460 MW on July 5th.
As a result, ERCOT released a statement urging its 26 million customers to use less power. The organization believes this would allow them to prepare for a fourth heat wave this summer.
Meanwhile, since July 3rd, Dallas’ temperature has gone above 100 degrees Fahrenheit. This signals the start of the heat wave.
However, there is no inbuilt reserve capacity on the Texan grid. Therefore, crypto miners in the state must cease operations during periods of excessive demand. This is to lessen the likelihood of severe system failures.
Crypto Miners Shut Down Operation
Usually, crypto mining is done using sophisticated computers that require a lot of electricity. The Bitmain Antminer S19 Pro, which is among the best models, uses 3,250 W of power.
Lee Bratcher, a member of the Texas Blockchain Association, stated that commercial mining activities using about 1,000 MW of power have shut down. As a result, the power they would have used is now available for commercial and retail use.
Furthermore, an official tweet states that Argo Blockchain PLC has also stopped operations. The firm received funds from the New York Digital Investment Group in May.
The fund was meant for it to build its 200 MW station in Dickens County. On June 9th, Riot Blockchain shut down operations at Rockdale. However, they started mining again soon after.
In reaction to ERCOT’s statement, Riot Blockchain reportedly shut down its operations. Additionally, Core Scientific has stopped mining.
Deregulation In Texas Made No Provision For Weather Conditions
Earlier in 2022, the crypto market crash and rising energy prices became widespread. As a result, several big miners in Texas might see their profitability decline.
Besides, crypto miners have trooped to Texas due to welcoming laws and deregulated energy structures. The 1999 power grid deregulation has both drawbacks and benefits.
One benefit of deregulation is reduced expenses and more options for consumers. Unfortunately, there were no clear criteria for protecting the grid from bad weather conditions.
Therefore, the state established ERCOT under the direction of the Public Utility Commission. The duty of the body is to control the wholesale power market in the state.
Meanwhile, ERCOT projects that the power demand will have increased by mid-2023. According to ERCOT, crypto mining power consumption would have increased by about 6 MW.