Proof of Work & Enabling the Energy Transition (Case Studies)

This paper from the Crypto Council for Innovation uses case studies to explore the ways in which Bitcoin mining is already helping to power the energy transition, at a scale and speed that is not currently possible with other use cases. It concludes that policymakers and regulators should view Bitcoin mining as a partner in the energy transition. 

Abstract:

“There are several challenges for projects focused on zero-carbon energy. To date, the answer to mismatches in energy supply and demand has been curtailment, which is costly and results in wasted energy. New projects are being stalled or withdrawn due to interconnection challenges – and more than 90% of requests in the US are for zero-carbon energy sources. Energy producers are being forced to sell at low or negative costs. Unmitigated gas flaring emits more than 400 million tons of CO2 equivalent emissions annually. The need for action on the energy transition is urgent – and Bitcoin mining can be an important bridge to much needed investments and market support. 

These mining operations, which are – in essence simply data centers that power the Bitcoin network – are uniquely suited to address some of these challenges due to their unique combination of flexibility, consistency, and transparency.

1 June 2023

Proof of Work and the energy transition (Crypto Council for Innovation, 2023)