Bitcoin

Tokyo Electric’s Subsidiary Using Renewable Energy To Mine Bitcoin

Agile Energy X, a subsidiary of Tokyo Electric Power Co. (TEPCO), is pioneering a new approach to bitcoin mining by using surplus renewable energy, an initiative seeking to take advantage of the waste of green power. Led by Kenji Tateiwa, the project was conceived in 2018 when issues with renewable energy “output control” surfaced. In regions like Kyushu, renewable energy producers were often required to halt power generation to prevent oversupply, leading to a significant waste of energy, especially during peak photovoltaic power generation times. Tateiwa envisioned a solution where this surplus energy could be channeled into Bitcoin mining, turning a challenge into an opportunity.

Bitcoin mining is notorious for its high energy consumption, typically requiring substantial computational power and electricity. However, Tateiwa’s innovative idea marries two previously disconnected concepts: utilizing excess renewable energy, which would otherwise be wasted, to mine bitcoins profitably. In 2022, he founded Agile Energy X, a TEPCO subsidiary, to explore the potential of this model on a larger scale.

The company has installed bitcoin mining machines in Gunma and Tochigi prefectures, particularly next to solar farms, where they harness excess power during periods of low demand. This approach has broader implications as Japan, aiming for carbon neutrality by 2050, seeks to integrate more renewable energy sources, which are inherently intermittent. For example, solar energy peaks during the day and drops off at night, while wind energy varies with weather conditions. Agile Energy X’s simulations reveal that, with a 50% renewable energy mix, around 240,000 gigawatt-hours of power could be wasted, a volume too large for current battery storage solutions.

By utilizing just 10% of that surplus, the company estimates they could mine bitcoins worth ¥360 billion ($2.5 billion) annually. This model, already practiced in U.S. states like Texas, presents a win-win scenario: green energy producers gain a new revenue stream, while the cryptocurrency sector benefits from sustainable energy use.

Although profitability remains limited by the current availability of surplus power in Japan, the future is promising. As more renewable energy is introduced, bitcoin mining using excess power could become a critical driver of financial stability for green energy producers, while fostering greater adoption of sustainable energy across the globe.

Author

Disclaimer

Today's Gazette cannot take responsibility for any form of loss or inconvenience that may result from any material contained on this website. The content is provided for informational purposes only and should not be relied upon for legal or financial decision-making. Nothing on this platform should be misconstrued as financial advice.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Bitcoin
BitcoinCryptocurrency

Bitcoin ETFs See Strong Inflows as Market Sentiment Reflects Potential Bull Run

Bitcoin continues to draw attention from investors, as U.S. spot Bitcoin ETFs...

BitcoinBlockchain

Robert Kiyosaki Warns of Financial Crisis, Urges Investment in Bitcoin and Silver

Renowned investor and author of Rich Dad Poor Dad, Robert Kiyosaki, has...

BitcoinCryptocurrency

SEC Postpones Approval Date for Options Listing of BlackRock’s iShares Ethereum ETF

Just a few days after giving the nod for a rule change...

BitcoinCryptocurrency

$92 million in BTC ETF Inflow Recorded as BTC/GLD is Expected to Rise by 400%

The 20th day of September recorded a significant inflow for Bitcoin ETFs....