The North American Electric Reliability Corporation (NERC), a nonprofit overseeing regional bodies that ensure energy stability, has published its yearly in-depth evaluation of the U.S. electrical grid’s long-term reliability. This assessment highlights significant parts of the U.S. and Canada as being at high or increased risk regarding energy reliability, including Texas, a state where the cryptocurrency mining sector is looking to grow.
The pace of both development and demand is accelerating, reaching levels not seen in over five years. The rate at which new projects are emerging is posing challenges for operator management, with the industry under strain due to escalating energy demands and pressures on the transmission system’s capacity, according to the report. The situation is further complicated by the U.S. Environmental Protection Agency’s efforts to cut carbon emissions, as noted by the National Rural Electric Cooperative Association (NRECA) in their commentary on the report. NRECA CEO Jim Matheson remarked:
“NERC’s latest evaluation presents a bleak outlook for our nation’s energy future, with electricity demand skyrocketing and the availability of consistent power generation dwindling. […] Without significant changes in state and federal energy policies, this challenging scenario will persist for years.”
Matheson also mentioned that nine states experienced rolling blackouts in December 2022.
The report also touches on the distinctive impact of crypto mining. This sector has the potential to adapt its operations and relocate or shut down in response to fluctuating energy prices, posing a challenge for energy providers in their planning and development efforts. The Texas grid operator, Electric Reliability Council of Texas (ERCOT), has greenlit grid connection studies for 9 gigawatts (GW) of power and is considering additional requests for 41 GW. To put this into perspective, one gigawatt can supply power to nearly 700,000 homes for a year, based on certain estimates.
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