US energy NGO warns of overwhelming demand as ERCOT considers cryptocurrency proposal
The North American Electric Reliability Corporation (NERC), a nonprofit corporation that oversees regional organizations supporting energy reliability, has released its annual long-term reliability assessment of the U.S. electric grid. It identified significant portions of the United States and Canada as areas at or high risk to energy reliability. These regions included Texas, where the cryptocurrency mining industry is looking to expand.
Both development and demand are growing “faster than at any time in the past five-plus years.” The report said new projects are being planned at a pace that is challenging operator management and the industry is facing pressure from growing energy demand and transmission system adequacy.
The key to understanding these NERC assessments is that they rely on data self-reported by utilities. SERC to NERC: “It’s OK here!” SERC to PSC: “Load has increased by 6.6 GW and we need more power, or we will see blackouts in 2026.” https://t.co/zELmhSpKjg pic.twitter.com/otav1mnezf
— Simon Mahan (@SimonMahan) December 14, 2023
In comments to the report, the National Rural Electric Cooperatives Association (NRECA) said the situation is complicated by the Environmental Protection Agency’s policies to reduce carbon emissions. NRECA CEO Jim Matheson said:
“NERC’s latest assessment paints another bleak picture for our country’s energy future as demand for power surges and the ever-available supply of generation dwindles. (…) Without major changes in state and federal energy policy, this is the reality we will face in the coming years.”
Mateson added that nine states experienced power outages in December 2022.
Cryptocurrency mining plays a unique role in the mix, the report said. They are flexible in their operations and can move or close as energy prices fluctuate. This can be a challenge for energy suppliers in their planning and development.
RELATED: ‘Don’t mess with Texas innovation’ — Supporters criticize bill that would eliminate cryptocurrency mining incentives.
Texas’ grid operator, the Electric Reliability Council of Texas (ERCOT), has approved a planning study for grid connections for 9 GW of power and is considering requests for an additional 41 GW. According to one estimate, one gigawatt could power nearly 700,000 homes for a year.
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