On November 29, 2022, the Electric Reliability Council of Texas (ERCOT) published a seasonal assessment and resource adequacy report for its region. The 22-page document explicitly states that Bitcoin mining operations are flexible loads that can provide substantial relief to the Texas grid during the upcoming winter and extreme peak load periods. According to the study, Bitcoin miners can rapidly curtail their operations, thereby freeing up approximately 1.7 gigawatts (GW) of electrical capacity—equivalent to the output of a medium-sized power plant.
Key Findings of the ERCOT Report
The report analyzed installed generation capacity based on historical data and extreme peak load scenarios. ERCOT noted that Bitcoin miners differ from ordinary industrial users: they can instantly shut down their rigs when electricity prices or Bitcoin's spot price fall below the breakeven cost. The study estimates that the breakeven cost for an Antminer S19 as of early November 2022 was about $86 per MWh. When spot electricity prices exceed this threshold, miners continue operations; otherwise, they immediately cease, returning power to the grid. This bidirectional adjustment capability is unique among large power consumers.
Bitcoin Miners as a 'Flexible Valve' for the Grid
ERCOT is not the only grid operator studying the demand-response (DR) potential of Bitcoin mining. The second-largest U.S. energy corporation, Duke Energy, launched a similar study in July 2022, with its lead analyst stating that miners had cooperated by providing data for a Bitcoin DR study. Additionally, Texas-based mining infrastructure provider Lancium partnered with battery storage firm Broad Reach Power to demonstrate that batteries can keep a mining facility running without reducing its computational power during extreme grid events, further proving the flexibility of miners combined with storage.
Political Controversy vs. Real-World Data
Earlier, some U.S. lawmakers pressured ERCOT to disclose information about mining operations, arguing that Bitcoin mining contributes to climate change and could potentially destabilize the Texas grid. However, ERCOT's new CEO told the press: 'We want to be able to serve any business that wants to do business in Texas. And that includes crypto miners.' The report itself refutes the destabilization fears: because miners can respond instantly, they are arguably the only type of operation that can curtail load in DR situations in no time. ERCOT anticipated that under typical winter grid conditions, sufficient installed generating capacity would be available to serve system-wide peak demand from December 2022 to February 2023.
This report provides authoritative evidence for the positive role of Bitcoin mining in the energy system. Miners are not only currency creators but also 'flexible valves' and stable revenue sources for grid operators—because they run nearly around the clock, consistently purchasing electricity. In an era of increasingly frequent extreme weather, such flexibility undoubtedly enhances grid resilience.