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Bitcoin Businesses

Bitcoin Miners Shut Off Rigs as Texas Power Grid Nears Brink (bloomberg.com) 153

Nearly all industrial scale Bitcoin miners in Texas have shut off their machines as the companies brace for a heat wave that is expected to push the state's power grid near its breaking point. From a report: Miners such as Riot Blockchain, Argo Blockchain and Core Scientific, who operate millions of energy-intensive computers to secure the Bitcoin blockchain network and earn rewards in the token, flocked to the Lone Star State thanks to its low energy costs and liberal regulations on crypto mining. The state has become one of the largest crypto-mining hubs by computing power in the world.

"There are over 1,000 megawatts worth of Bitcoin mining load that responded to ERCOTs conservation request by turning off their machines to conserve energy for the grid." Lee Bratcher, president of Texas Blockchain Association told Bloomberg in an email response. "This represents nearly all industrial scale Bitcoin mining load in Texas and allows for over 1% of total grid capacity to be pushed back onto the grid for retail and commercial use." Miners may see a drop in profitability as the heat wave keeps their machines off by sending energy prices soaring and further stressing the state's power grid. The miners are already struggling to repay debt and raise additional capital with Bitcoin prices in sharp decline.

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Bitcoin Miners Shut Off Rigs as Texas Power Grid Nears Brink

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  • Additional info (Score:5, Informative)

    by raymorris ( 2726007 ) on Monday July 11, 2022 @02:36PM (#62694080) Journal

    ABC News adds:

    The call for Texans to voluntarily conserve their electric use comes as scorching temperatures overtake the state and electricity demands have surged. As of Monday, the heat index for Austin is predicted to be 111 degrees, with predictions for 109 degrees in Houston and 105 degrees in Dallas.

    ERCOT appealed for conservation from 2 to 8 p.m. Monday,

    The Monday appeal comes due to record high electric demand and low wind, ERCOT said in the statement, as wind generation is shown to be at less than 10% of its capacity.

    ERCOT suggests residents and business owners turn up their thermostats one to two degrees and postpone running major appliances or pool pumps to conserve during peak hours.

    • by Anonymous Coward

      This heatwave is nothing. It's only 115F outside as I type this, here in sunny Arizona.

      Back in 1990, we got up to a high of 122F and the airplanes couldn't even take off because the air could no longer create enough lift. Now THAT was a hot heatwave.

      • by jbengt ( 874751 ) on Monday July 11, 2022 @04:42PM (#62694468)

        Back in 1990, we got up to a high of 122F and the airplanes couldn't even take off because the air could no longer create enough lift.

        I remember a day like that, arriving in Phoenix for a business trip in the evening. I missed the high temperature, but the low for the night was 93F, IIRC. A colleague of mine was there a little earlier than I and got stuck waiting for it to "cool" down before they could take off.
        I got to spend the next morning walking 150,000 sq ft of roof surveying equipment. The roof was rolled asphalt painted with a reflective aluminized coating, making it seem like there was one sun above and one sun below. I literally thought I might die. And I had gotten up on the roof first thing to beat the heat, finishing before noon and well before the afternoon high. I was younger then, I don't think I would do that now.

      • 122

        Yikes! Downtown LA reached 120+F twice in the past decade. I could only imagine what the vallies and desert must've been like.

        120F disables airplanes? O_o

        • Take off speed for a aircraft is based on air density and weight.
          Minimum runway length is based on take off speed, weight, engine performance and safety margins
          Engine performance is based on air density and temperature.

          It's quite possible hot days in high elevation airports can ground planes. I don't believe there is a specific temperature limit though

      • by _merlin ( 160982 ) on Monday July 11, 2022 @09:09PM (#62695046) Homepage Journal

        Back in 1990, we got up to a high of 122F and the airplanes couldn't even take off because the air could no longer create enough lift.

        It isn't primarily lack of lift that prevents take-off in high temperatures, it's engine performance with hotter ambient air. The lower density of the hot air means you can't burn as much fuel and get less power output. In higher temperatures at high altitude, you get reduced engine power output and lack of lift from the rarefied air at high altitude, the so-called "hot and high [wikipedia.org]" condition.

    • Re:Additional info (Score:4, Informative)

      by ToasterMonkey ( 467067 ) on Monday July 11, 2022 @03:34PM (#62694262) Homepage

      ABC News adds:

      The call for Texans to voluntarily conserve their electric use comes as scorching temperatures overtake the state and electricity demands have surged. As of Monday, the heat index for Austin is predicted to be 111 degrees, with predictions for 109 degrees in Houston and 105 degrees in Dallas.

      ERCOT appealed for conservation from 2 to 8 p.m. Monday,

      The Monday appeal comes due to record high electric demand and low wind, ERCOT said in the statement, as wind generation is shown to be at less than 10% of its capacity.

      ERCOT suggests residents and business owners turn up their thermostats one to two degrees and postpone running major appliances or pool pumps to conserve during peak hours.

      The wind capacity is sort of misleading, wind is always at its lowest this time of day. It is lower than other days at this same time, so 10% at noon is low compared to say 30% at noon. Wind peaks overnight.

      • Coming up when the an excuse doesn't make it misleading.
        The nation's largest wind farms are in fact not providing significant power. That

        • Ugh, I accidentally hit submit.

          Sure you're right, it NORMAL for there to be no wind power when it's mostly needed. That fact that wind normally isn't all that great doesn't make it misleading to point out it's really sucked this month.

          We've had no storms and no rain for about a month, just still, hot air. Which means no wind power and no hydro.

          • Mmm... Texas... Has anyone thought of trying solar power? Might be worth a try.
            • There is about 10GW of solar. It is running at capacity. But wind IS down. Normally it does go down during the day to around 8-10GW, but these past couple of days it is dropping to near zero due to high pressure. A fairly typical day in summer nets 20GW of power from wind/solar. At night it stays near that with just wind. So we are pulling around 10GW more than typical from excessively hot weather and missing 10GW of wind making a 20GW deficit that is being made up by nat gas I assume.
      • Re:Additional info (Score:5, Insightful)

        by edi_guy ( 2225738 ) on Monday July 11, 2022 @05:04PM (#62694534)

        The ERCOT dashboard (https://www.ercot.com/) is actually decent insofar as it shows the basic info, and isn't super cluttered.

        And shows that the solar generation is going up as wind is going down. I presume some generalized relationship there, but I dunno. Nice to see that about 15% of TX electrical is coming from solar + wind (using their figures from today). Seems like TX would be in a good position to say double their installed wind, maybe triple their installed solar. And again double their nuclear (now at ~10%) . Boom, making huge strides towards carbon neutral, and importantly getting to some price stability.

        I would think average Texans if anyone are pretty tired of boom.bust cycles around petroleum. Especially having their chain yanked by the likes of Russia, Iran, Suadi Arabia, Venezuela, and so on.

        • And shows that the solar generation is going up as wind is going down. I presume some generalized relationship there, but I dunno.

          Of course as the temperature increases, the conversion efficiency of solar panels decreases.

          • Solar doesn't have to be photovoltaic. There's other ways of capturing energy from the sun, especially somewhere as hot & sunny as Texas.
          • by dougmc ( 70836 )

            It's a real factor, but let's put some numbers behind it :

            To pick a worse case scenario, suppose we've got a solar panel temperature coefficient [solar.com] on the high end, of -0.5%/C. And we've got the highest temperatures seen by them -- 65 Celsius, 149 degrees Fahrenheit.

            That works out to an efficiency loss of 20% -- significant, but it's not like it makes the solar panel useless. And remember, this is a worst-case scenario.

            Picking a case where the solar panel has a temperature coefficient of -0.3%/C and 130 degr

        • They would need to install wind power offshore. The weather patterns on land - or if you want to dare to say it: the general climate, is not in favour of land based wind power.

          Perhaps with more modern installations that reach higher, and perhaps with cherry picked locations, you could improve that a bit. E.g. a side of a hill that faces the general wind direction, the wind going uphill usually speeds up considerable.

        • > Nice to see that about 15% of TX electrical is coming from solar + wind (using their figures from today).

          On AVERAGE wind is 20%. Some times it's zero, sometimes it's 25. That's the thing about wind - it's nice to have when it feels like coming around. Definitely a good thing to have, just don't ever depend on it.

          • by bn-7bc ( 909819 )
            On a slightly related note, i wonder why we call solar renewable (zero carbon yes) look heer the Sun creates energy by fysing 2 hydrogen atoms into one helium atom ( let's not get bogged down with to many details here the physics involved are apparently rather complex), once that has happened the fusion chain stops for our purposes, so where is the renewable here? Fair enugh the sun has rather a lit of hydrogen still ,eft, so on a human timsvake the energy might seam limitless ( if we only wher better at c
        • Solar can be somewhat complementary to wind, but the issue comes at twilight. Your AC unit continues to have to struggle even as the sun starts to set, due to residual heat. And people all tend to follow a fixed routine: they come home in the evening, turn on lights, run appliances, play a computer game, turn the AC down to sleep, etc.

          So there's a big load spike, and it hits around the time solar irradiance starts dropping off. And wind doesn't always pick up in time to help in conditions like this because

          • That's why grid-scale batteries are used in places like Australia. They react automatically to load demands (milliseconds), and can stabilize grid supply for hours if sized appropriately. That is plenty of time to bring on other producers (gas, hydro), and if ERCOT wasn't backward they could also import from other regions.
        • You want price stability? Maybe is Texas would stop being so... Texas and actually connect to the North American power grid, which is designed to balance loads across the country for exactly this reason instead of going it alone and thus being affected by every local weather phenomenon.

        • But if TX had adequate baseline power how would ERCOT monetize shortages? Silly.
    • How about some solar panels?

    • The call for Texans to voluntarily conserve their electric use .

      This is Texas we're talking about, right? Since when did Texans ever conserve anything? Most of them will probably increase their use just to show how Texan they are.

      https://www.youtube.com/watch?... [youtube.com]

  • by Miles_O'Toole ( 5152533 ) on Monday July 11, 2022 @02:48PM (#62694122)

    Privately: We'll be back at it as soon as we figure out how not to get caught.

  • Note (Score:4, Insightful)

    by sjames ( 1099 ) on Monday July 11, 2022 @03:00PM (#62694156) Homepage Journal

    If Bitcoin was rallying at 60K rather than struggling at 20K, the miners would happily leave the state to fry or go to the poor house paying the jacked up rates.

  • Itâ(TM)s so hot a sunny is too bad we donâ(TM)t know of a way to increase power output whenever itâ(TM)s super sunnyâ¦
  • by NoWayNoShapeNoForm ( 7060585 ) on Monday July 11, 2022 @03:06PM (#62694172)

    Go over to the ERCOT webiste. I'll wait for you.

    www.ercot.com

    Now take a look at the dashboard graphs that they have. They have quite a few of those, but they are easy to read if your eyesight is good.

    Notice how solar power generation ramped up from "0" at night to pretty much peak output once the Sun was up in the morning sky.

    Notice how wind farm generation has been slowly ramping up all day as winds increase. ERCOT predicted that wind generation would be weak on 11-July-2022.

    In other news, the coal-fired plants and "tea kettle" nuke plants are still online. And for "political reasons", Texas still does not believe in industrial-scale power interconnects with other grids.

    Take a look at ERCOT's "Unplanned Outage Report" for 11-July-2022. Quite a mix of power is either offline or in limited production for an assortment of reasons: "lack of fuel", "repairs", "other", and "unknown".

    My point is simple, as stated in the 'Comment Subject'...a mix of power is needed. A "wind & solar only" power generation mix will not produce on a winter day (not everyone lives in Arizona or California) when solar panels are covered in snow and the wind isn't blowing; been there and done that. And battery storage on the scale that Texas would need? You must find great pleasure in the act of increasing Elon Musk's financial wealth by astronomical amounts.

    Think about it this way. When the wind isn't blowing, what sources will replace it? When the Sun isn't shining, what sources will replace it? When that coal-fired or nuke plant is offline for whatever, what sources will replace it?

    On really hot Summer days, and Texas is running above average this year for days at or above 100 degrees, the Texas power grid gets pushed to it's limits. Maybe that's a sign of "supply & demand" truly working since building a new plant for industrial scale power generation does not happen overnight. Other than solar & wind projects (and both have benefited from various "tax incentives" over the years), not 1 truly "baseline power generation source" has been built in Texas for a decade or more, yet the state population is increasing as more & more people & companies move to it.

    Oh, and that influx of newbies stresses the already limited water resources of Texas of which no new reservoirs have been built in at least 20 years. Many localities enforce some form of water restrictions year round in Texas. Is electricity next?

    • by fahrbot-bot ( 874524 ) on Monday July 11, 2022 @03:19PM (#62694214)

      Another source they could add would be participation in the national electrical grid, where they could purchase power when their grid is insufficient.

      • Another source they could add would be participation in the national electrical grid, where they could purchase power when their grid is insufficient.

        Everybody sing along now...

        If you're happy with FERC raise your hand! If you're happy with FERC raise your hand!

        Power grid interconnects on "Texas scale" would immediately introduce FERC to the power grid problems of Texas. Two bunches of regulatory clowns is too much when the one bunch of Texan regulatory clowns is more than enough for anyone.

        But seriously...

        On a political level, Texas has never been happy with FERC and FERC's forms of "Federal Government interference in state affairs". There are some real

      • The dirty secret is Texas would rather buy power from Mexico than connect to the national grid. https://www.ecmag.com/section/... [ecmag.com]

        • It kind of makes sense, since Mexico and Texas are neighbors. Texas Republicans might talk nasty about keeping Mexican immigrants out, but that's just to get votes from to stay in office. When it comes to electricity supplies, they know that people get very grumpy about the electricity going out, and that grumpiness turns into lost votes. That causes flashes of pragmatism when push comes to shove.

    • of which no new reservoirs have been built in at least 20 years. - well whose is to play for that beyond Texans unless of course they expect the government to build them at other tax payers expense.
    • by gtall ( 79522 )

      New reservoirs won't do squat without rain : https://droughtmonitor.unl.edu... [unl.edu]

    • My point is simple, as stated in the 'Comment Subject'...a mix of power is needed. A "wind & solar only" power generation mix will not produce on a winter day (not everyone lives in Arizona or California) when solar panels are covered in snow and the wind isn't blowing; been there and done that. And battery storage on the scale that Texas would need? You must find great pleasure in the act of increasing Elon Musk's financial wealth by astronomical amounts.

      Think about it this way. When the wind isn't blowing, what sources will replace it? When the Sun isn't shining, what sources will replace it? When that coal-fired or nuke plant is offline for whatever, what sources will replace it?

      You're tilting at windmills bud. 50:50 is a mix, 10:90 is a mix, 90:10 is a mix, 99:1 is a mix

      Texas is only at what, 10-15% wind and solar? You're saying the grid can't be only wind and solar, but can it be 90%? 50%? You're going to need a bit more data. Kind of pointless arguing for a mix when 100% wind/solar is a straw man and we're only at 10% as it is.

    • not 1 truly "baseline power generation source" has been built in Texas for a decade or more
      Because Texas does not need one. They need peaking power, which is pretty clear from your rant before that line.
      My assumption is, as you use "base line" and not "base load", you do not know what you are talking about.

  • by wakeboarder ( 2695839 ) on Monday July 11, 2022 @03:14PM (#62694198)

    at all. They are making power more expensive and using up power to turn it into heat while increasing CO2 emissions. All this to produce something that has no value. Kick BTC mining to the curb.

  • by fahrbot-bot ( 874524 ) on Monday July 11, 2022 @03:16PM (#62694208)

    When other states lack capacity, they simply get additional power from other states via the national electrical grid. TX / ERCOT declines to participate in that so I have trouble feeling bad for them when their stand-alone grid fails them.

    • You mean, so we Texans could avoid rolling blackouts like in California, where they are connected to the national grid?

  • Texas is focused on monstering white Christian "values" from the 1950s on all Texans and beyond, instead of doing anything to fix their power grid which has already failed during a recent winter costing lives.

    Not that I care. Let them wallow in bullshit and blazing heat and freezing houses. The rest of the world will move on.

  • Ha ha ha! Crypto-bros losing money! :D
  • Mine the dip!

  • So Texas can't handle the heat and they can't handle the cold. That's on them for not being smart enough to set-up their grid to handle it on their on. No matter what source of power, they still haven't learned. My point is that in the future when EV's are at 70-90%, they won''t be able to handle the power load. Texas is so big and long distances to drive, EV's aren't ready for that.

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