A power plant in New York has been using some of its excess power to mine Bitcoin. The reason for this is that sometimes, it is not always possible to send excess power to the grid. As a result, natural gas plants are sometimes forced to vent the gas.
The power plant, located in Dresden, NY, has come up with a solution to this waste. Greenidge Generation has been using excess power to mine BTC. Currently, the plant has 7000 mining rigs and it produces about 5.5 BTC daily. This comes to about $45,000 at the time of writing the article.
Atlas Holdings, which is the mining facility and the partner of the plant, has described the arrangement as a win for both the community and the power plan. In theory, this helps the plant earn a profit while at the same time creating employment and tax revenue. This is a logical decision since mining rigs use a lot of energy. However, this will not be an issue for the plant, which is trying to get rid of the excess power.
Only Works for Certain Plants
However, this arrangement would not work for all types of plants. For instance, while it works well for gas plants, it would not be a good idea to use the idea in renewable power plants such as wind farms or solar farms. The more logical solution would be to store excess energy from renewable sources for later use.
It is also worth noting that this arrangement might not always be profitable. This is because the demand for power form the plant could grow as the seasons and years change. As a result, it would not have any excess energy to use for BTC mining. Additionally, the difficulty of mining BTC grows with time. As such, it might get less value for the same energy it is getting right now than in the future unless the price of BTC grows. Additionally, the price of BTC could drop drastically, which could make it less profitable to continue with the operation. If this situation proves sustainable, more power plants might decide to adopt the same model.