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Texas’ utility regulator on Thursday adopted a rule requiring cryptocurrency mining facilities connected to the state’s main power grid to register with the state’s grid operator.
The rule, which was imposed by lawmakers in a 2023 bill, requires cryptocurrency mining facilities that consume more than 75 megawatts of energy to report to the Public Utility Commission and the Electric Reliability Council of Texas, which oversees the state’s power grid, the location of the facility. ownership and demand for electricity.
Cryptocurrency mining, which uses large amounts of energy to run and cool its computers, has grown in Texas, contributing to an increase in electricity demand across the state. The rule was designed to help the state determine how much electricity crypto facilities consume and protect grid reliability.
“This is another example of the PUCT and ERCOT adapting to support a rapidly changing industrial landscape,” PUC Chairman Thomas Gleeson said in a statement. “Most importantly, we will always take the necessary steps to ensure reliable, affordable energy for all Texans.”
Existing facilities must register by February 1 and renew their registration annually. Companies must also provide each facility’s expected peak load for the next five years, in addition to the actual energy consumed by the facility during the previous year.
Failure to register could result in a penalty of up to $25,000 per violation per day.
Crypto facilities are considered “significant flexible loads” by state regulators, meaning they can adjust their power consumption quickly, such as by turning off their computers when the network is strained.
In July, ERCOT estimated that crypto facilities on the main grid could consume up to 2,600 megawatts of energy, roughly the same amount of energy used by the city of Austin. The state recently approved cryptocurrency mining facilities expected to use an additional 2,600 MW of electricity, with more expected to come to Texas soon.
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This growth, in addition to growing interest in Texas from data centers, hydrogen production facilities and oil and gas companies electrifying their drilling operations largely concentrated in the Permian Basin, has driven the ERCOT to predict that electricity demand in Texas could nearly double within six years. .
Demand on the power grid reached a record 85 gigawatts last year, the highest ever in the state. ERCOT experts now estimate that demand could reach around 150 gigawatts by 2030.
