Texas Energy Grid and Bitcoin?

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Aug 16, 2012
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#3
This is actually old, like a couple months old.

Do not have the specifics, but part of the intent as I understood it is to stabilize the wildly fluctuating delivery cost of electricity. With delivery costs highly dependent on demand, the thought process was to use miners as a buffer. Say optimal demand is 10 units. On days the demand is 8 units, the miners have access to 2 units, but if demand is down to 3 units, the miners can use 7 units. If demand is over the baseline then the miners get nothing.

Been a while since I read up on it but that is the basics of what I recall. Bet that @Donnyboy can provide a lot more clarification.
 

OSUCowboy787

Territorial Marshal
Dec 31, 2008
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Keller, Texas
#4
This is actually old, like a couple months old.

Do not have the specifics, but part of the intent as I understood it is to stabilize the wildly fluctuating delivery cost of electricity. With delivery costs highly dependent on demand, the thought process was to use miners as a buffer. Say optimal demand is 10 units. On days the demand is 8 units, the miners have access to 2 units, but if demand is down to 3 units, the miners can use 7 units. If demand is over the baseline then the miners get nothing.

Been a while since I read up on it but that is the basics of what I recall. Bet that @Donnyboy can provide a lot more clarification.
actually not a terrible idea depending on the legality of throttling those miners like that. I assume someone would be upset if they were throttled to zero and not making money with their hardware.
 

OranGE-KK

Deputy
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Dec 11, 2011
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#5
That kind of already happens at peak usage times; utility companies curtail load when things get stretched thin.
 

Donnyboy

Lettin' the high times carry the low....
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Oct 31, 2005
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#6
This is actually old, like a couple months old.

Do not have the specifics, but part of the intent as I understood it is to stabilize the wildly fluctuating delivery cost of electricity. With delivery costs highly dependent on demand, the thought process was to use miners as a buffer. Say optimal demand is 10 units. On days the demand is 8 units, the miners have access to 2 units, but if demand is down to 3 units, the miners can use 7 units. If demand is over the baseline then the miners get nothing.

Been a while since I read up on it but that is the basics of what I recall. Bet that @Donnyboy can provide a lot more clarification.
Kinda..... This is an attempt to sell something that will smooth the curve between nights/days/weekends/holidays thus making round the clock pricing better on average and support thermals staying online.....but it's really to get crypto centers here. Crypto mines will not fix this....it doesn't address any of the issues that lead to last years issues during the storm......this is Abbott trying preach business and tie the grid which is viewed a failure on his watch under the same box....next announcement "hey crypto centers come to Texas we'll give you a sweetheart tax deal.
 
Aug 16, 2012
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#7
Kinda..... This is an attempt to sell something that will smooth the curve between nights/days/weekends/holidays thus making round the clock pricing better on average and support thermals staying online.....but it's really to get crypto centers here. Crypto mines will not fix this....it doesn't address any of the issues that lead to last years issues during the storm......this is Abbott trying preach business and tie the grid which is viewed a failure on his watch under the same box....next announcement "hey crypto centers come to Texas we'll give you a sweetheart tax deal.
Thanks. Knew you could iron out my sketchy outline
 

Donnyboy

Lettin' the high times carry the low....
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Oct 31, 2005
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#9
https://www.investmentmonitor.ai/tech/kazakhstan-bitcoin-mining-crypto-currenc

Might be related. Kazakhstan was the cheapest energy provider bringing in Chinese miners. The power was being subsidized and now it’s not. Hence the riots. The next cheapest energy providers are us. Seems like a bad idea bringing in more energy suckers.
The difference in us and them is it’s a pimple on our electric butt…… and it does have advantages……all of these have onsite backup power with and onsite fuel source. In emergencies you could turn them as low as possible and have a boat load of little generators export which is a very good thing. Also if you believe in crypto at all it would be great to have the mineral rights.

But if you want carbon independence this is a big step in the opposite direction. I just poo poo’d on a large scale but on a local scale it absolutely changes things. These things average 25-75 MW. For scale the city of Denton Texas has a local control area of about 140 MW. So 25 Woodward and Moreland…..Lawton and base etc 75. That will warp local pricing like single area pricing so it changes the interconnect a dollar but your house hundreds…..and it changes the distribution in your area faster than it can catch up so that thermal back up power will be running a bit. And they aren’t going to build them in urban centers……put them where land and power is cheap, that’s the lawtons and Woodwards of the world.
 

llcoolw

Territorial Marshal
Feb 7, 2005
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Sammamish, Washington.Dallas, Texas.Maui, Hawaii
#10
The difference in us and them is it’s a pimple on our electric butt…… and it does have advantages……all of these have onsite backup power with and onsite fuel source. In emergencies you could turn them as low as possible and have a boat load of little generators export which is a very good thing. Also if you believe in crypto at all it would be great to have the mineral rights.

But if you want carbon independence this is a big step in the opposite direction. I just poo poo’d on a large scale but on a local scale it absolutely changes things. These things average 25-75 MW. For scale the city of Denton Texas has a local control area of about 140 MW. So 25 Woodward and Moreland…..Lawton and base etc 75. That will warp local pricing like single area pricing so it changes the interconnect a dollar but your house hundreds…..and it changes the distribution in your area faster than it can catch up so that thermal back up power will be running a bit. And they aren’t going to build them in urban centers……put them where land and power is cheap, that’s the lawtons and Woodwards of the world.
I know that all makes sense to you. It’s counterintuitive to me. I get the cheap land and energy bit but is the crypto mining a good thing?
 
Jun 4, 2014
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Dallas, TX
#11
I know that all makes sense to you. It’s counterintuitive to me. I get the cheap land and energy bit but is the crypto mining a good thing?
Crypto is a great vehicle to utilize curtailed energy from renewable plants when there is excess energy. Curtailment happens when the generators produce energy, but have no where to discharge or store. This is one of the biggest sucks on the renewable space.

This was the latest Senate hearing on the topic. The guy from Cornell is a bit dubious, as he has financial ties to a proof of stake coin called Chainlink. Mr. Brooks is by far the most insightful testifier on the panel.
https://www.youtube.com/watch?v=HWg731-3id8


I won't get into the debates on whether you believe in crypto or not, as that is a broad philosophical debate, but Mr. Brooks does comment on this topic as to "what is the value of mining crypto?"