The truth is, a future toward 100% renewables penetration can never be achieved in an economically responsible way without flexible demand-side loads.
If we look at wind energy as an isolated solution, ignoring the various nuances, simply using this as a test case…depending on the installed location we can expect an average capacity factor of approximately 30%. Capacity factor being a measure of the installed capacity that can be utilised on an average basis.
If we want to achieve a safe, reliable and stable grid, it stands to reason that with a capacity factor of only 30% we would need a grid that is 3x our maximum demand. Sounds reasonable. However when we stop to think about what maximum peak demand represents, it represents our maximum billable revenue.
Therefore, with this simply example we can start to identify a problem. If we can only generate revenue from 1/3 of our maximum capacity, where do we find the capital to backstop the other 2/3 of capacity required without a hope of generating revenue from that installed capacity.
The simple solution is two-fold:
1. Directly through energy consumer bills and purchase agreements; or
2. Indirectly through the taxpayer via government funded programs and subsidies.
Unless….
We can introduce flexible demand-side loads to introduce new revenue sources that can soak up a large % of the remaining 2/3s of the installed capacity, generate revenues for the operators but most importantly, can be switched off in a matter of seconds to supply critical demand-side response when the energy is needed. Bitcoin Miners play this role unlike any demand-side load we have ever known.
Bitcoin mining will be a major tool that will be used to help capitalise energy projects while minimising the cost to consumers and taxpayers.
It is only a matter of time before we see this coming to the fore with energy projects the world over. Bitcoin mining is THE game-changer for energy grids and energy operators.