Texas Miners Are Being Given Incentive To Shut Down Operations
Texas saw triple-digit, record breaking, temperatures over the weekend. The state’s grid operator, Electric Reliability Council of Texas (ERCOT), is providing financial incentives by paying companies to decrease operations in peak periods, so that more energy can be delivered to the system.
In February, energy issues arose as temperatures were getting very low. Miners voluntarily shut down or paused operations in Texas to allow residents to receive power for heat.
This time, with the financial incentive, it seems like an easy call to shut down mining operations, especially given the constantly lowering price of Bitcoin. Lee Bratcher, the head of the Texas Blockchain Association, announced that nearly all industrial Bitcoin miners have shut down operations as demand peaks. This is bringing 1% of the grid capacity back for redistribution, around 1,000 megawatts (or 1 gigawatt).
Bitcoin miners in Texas are required by law to turn off their mining machines when the state faces energy shortages. Core Scientific powered off all mining machines in Texas to provide support for the ERCOT grid. While Riot will also be participating, they have agreed to curtail energy consumption when called on. Core Scientific less than 15% of its operation in Texas, while Riot is operating North America’s largest Bitcoin mining facility in Whinestone, Texas capable of 750 megawatts. Riot is also developing a 1 gigawatt (1,000 megawatts) mining facility in Navarro County, Texas. The first phase of the gigawatt facility is expected to commend in July 2023 with 400 MW capacity on 265 acres.
