Bitcoin Mining Advocated to Boost UK’s Renewable Energy Grid

• Bitcoin Policy UK advocates using Bitcoin mining to support sustainable grids.

• A recent report highlights Bitcoin mining’s potential to provide a robust solution.

Bitcoin Policy UK, a leading crypto advocacy group, has called on the new administration to consider Bitcoin mining as a strategy to enhance the country’s renewable energy grid. The organization claims that Bitcoin mining can be very useful for providing a stable power supply of renewable energy sources in the UK which has an unreliable power supply. 

Report Highlights Benefits of Bitcoin Mining

Bitcoin Policy UK issued a report on the 10th of July, noting that Bitcoin mining can be advantageous to renewable energy. According to the report, the Bitcoin mining industry, a significant consumer of electricity, can offer a viable and long-term solution for deploying spare renewable energy. This way of offering a full-price inelastic demand, Bitcoin mining could establish a certain ‘lower bound’ for the price of energy, which could be capped off at a certain level. This model could possibly not need any government subsidies or payments, which is a good idea for capitalizing on stranded or wasted energy. 

The report also highlighted that Bitcoin mining is already being employed as a flexible load in Texas, where miners offer a load that can be disconnected immediately in response to grid demands and recommissioned when the demand reduces. This flexibility can assist in the achievability of the UK’s energy security strategy objectives by giving credibility to renewable energy producers that there will be a market for all the energy that they generate. 

New Government, New Strategy

The move to this new strategy is in light of the UK elections that were held on July 4, where a new Labour government was formed. The new administration also laid down its plans to create a National Wealth Fund with a capital of €7. 3 billion ($9. 3 billion) for developing the green economy. This alteration in government reigns as a chance for Bitcoin Policy UK to advance policies that will enhance the welfare of the millions of UK residents using Bitcoin. 

Freddie New, the co-founder of Bitcoin Policy UK and the head of policy, added that there is a lot of room for improvement in terms of fostering and monetizing sustainable power through mining. He also highlighted the advantages of cutting methane and biogas emissions if Bitcoin mining takes place on or near farms or landfills. 

The previous government had high hopes of turning the UK into a crypto hub but faced several challenges. Because of inefficient rules that were put in place in the country, it was difficult for businesses to start or even run, and many chances were also missed, especially in comprehending the usage of Bitcoin in things beyond the financial surface.

Bitcoin Policy UK wants to help the new government establish coherent policies that will help the crypto industry grow and avoid such failures.  Furthermore, this initiative could cut down on energy usage costs, and thus, the UK government could make more profits from the energy used by the miners.