The Electric Reliability Council of Texas (ERCOT) released a comprehensive seasonal assessment and resource adequacy study on November 29, 2022, which for the first time explicitly evaluates the role of bitcoin mining as a flexible load resource. The report concludes that bitcoin mining facilities can be beneficial to the Texas grid during upcoming winter months and extreme peak demand events.
Miners Can Swiftly Shed 1.7 GW of Load
Using historical data and extreme peak load scenarios, ERCOT’s analysis found that bitcoin mining operations can curtail their power consumption by approximately 1.7 gigawatts (GW) during winter months, providing critical relief to the grid. Unlike other large industrial loads that cannot adjust quickly, bitcoin miners possess unique flexibility: they are designed to operate on thin margins and will often shut down when electricity costs exceed the value of bitcoin produced. The study notes that the breakeven price for an Antminer S19 unit was estimated at $86 per MWh in early November 2022, meaning miners automatically reduce load when wholesale prices spike above that threshold.
DR Pilot Programs Already Underway
The ERCOT study is not an isolated effort. In July 2022, Duke Energy — the second-largest U.S. electric utility — launched a demand response (DR) study in partnership with local bitcoin miners. Duke’s lead analyst confirmed the collaboration aimed at better understanding how miners can participate in DR programs. Meanwhile, Texas-based infrastructure provider Lancium teamed up with battery storage company Broad Reach Power to demonstrate that miners can use on-site battery systems to maintain operations without drawing grid power during extreme events, effectively serving as a dynamic buffer for the grid.
Political Pushback vs. Empirical Evidence
Despite growing political scrutiny — U.S. lawmakers have recently pressed ERCOT for information on mining impacts, citing concerns over grid stability and climate change — the report’s findings directly contradict those fears. The study emphasizes that miners are the only type of industrial load capable of virtually instantaneous demand response, often reducing consumption by hundreds of megawatts within minutes. ERCOT’s new CEO stated in a press interview, “We want to be able to serve any business that wants to do business in Texas, and that includes crypto miners.”
Looking ahead, ERCOT anticipates sufficient generating capacity for the December 2022–February 2023 winter season assuming typical weather conditions, and the flexibility provided by bitcoin miners is a key part of that confidence. The full 22-page report can be accessed on ERCOT’s website.