Hydroelectric power
Summary
All types of Hydroelectric power plants experience significant energy losses due to the continuous flow of water sources.
Bitcoin mining presents an opportunity to monetize surplus energy that would otherwise be wasted — when dams reach maximum capacity ans batteries are full.
Bitcoin mining flexibility is perfect for a Demand-response program, as it can be instantly turned on or off in response to real-time electricity demand.
Bitcoin mining allows Hydroelectric power producers to significantly increase their revenue by leveraging excess electricity.
Water-cooling systems ensure an optimal operating temperature for ASICs, minimizing downtime and maximizing profitability.
Excess and unavoidable energy
There are two main types of Hydroelectric power plants:
Reservoir-based plants feature a dam that retains water within an expansive reservoir. These plants possess the flexibility to adjust energy production by regulating the water flow through gate openings. However, when the dam attains its maximum capacity, surplus energy is lost.
Run-of-river plants operate continuously, utilizing the ongoing flow of water for power generation. Unlike reservoir-based plants, run-of-river plants lack the ability to modulate their production levels. Similar to Wind and Solar power, run-of-river hydroelectricity is considered an "unavoidable" renewable energy source, meaning that unutilized or unstored energy is lost.
In both cases, the inherent characteristic of continuous water flow poses challenges to optimizing hydropower production.
While some energy producers employ batteries for storing excess energy, this solution proves inadequate due to high production costs, limited storage capacity, and relatively short lifespan. In practice, the energy that can be effectively stored in batteries is minuscule in comparison to the overall energy loss.
Everywhere, Hydroelectrical power producers face the same challenges. How could all their surplus energy be utilized in a profitable way?
Bitcoin mining as a solution
Bitcoin mining is the optimal solution for Hydroelectric power producers seeking to maximize the profitability and flexibility of their operations. By integrating Bitcoin mining into their activities, energy producers can effectively utilize surplus energy and enhance revenue. Reservoir-based plants can leverage Bitcoin mining to harness excess energy once the dam reaches maximum capacity. Similarly, run-of-river plants can capitalize on "unavoidable" energy that would otherwise be wasted during periods of low demand.
A key advantage of Bitcoin mining lies in its exceptional flexibility, making it an ideal fit for energy optimization strategies. Bitcoin mining aligns perfectly with the objectives of Demand-response programs, ensuring that mining machines remain inactive during high-demand periods. When demand is low, the excess energy is utilized, boosting producers' income and enabling sustainable price reductions for consumers.
By integrating Bitcoin mining operations, Hydroelectric power producers have the potential to significantly enhance their revenue streams. Automated strategies based on predefined criteria such as electricity prices or demand levels facilitate efficient start and stop processes. Through the implementation or hosting of Bitcoin mining operations, energy producers can generate substantial passive income, by solely utilizing their excess electricity.
Furthermore, the incorporation of water-cooling systems, easily integrated into Hydroelectric-powered Bitcoin mining operations, enables ASICs to maintain a safe operating temperature at a lower cost. This fosters a reliable environment for energy producers, minimizing downtime and maximizing profitability.
Given its numerous benefits and synergies, it is no surprise that Hydroelectric energy is the primary power source for Bitcoin miners worldwide.
Benefits for Hydroelectric power producers
Bitcoin mining allows Hydroelectric power producers to leverage surplus energy, significantly increasing their revenue
Monetizing surplus energy
Bitcoin mining is a valuable opportunity for Hydroelectric power plants to monetize surplus energy when demand is low, effectively avoiding energy wastage. Producers optimize their revenue stream by utilizing an already available resource that would otherwise be wasted.
Grid optimization
Bitcoin mining offers exceptional flexibility, enabling energy producers to dynamically adjust their energy output based on demand. Such flexibility aligns perfectly with the objectives of Demand-response programs, contributing to overall grid optimization.
Profitability
Bitcoin mining allows Hydroelectric power producers to significantly increase their revenue. By utilizing their excess electricity, producers can generate substantial passive income, unlocking additional profitability for their operations.
Reliability
The implementation of water-cooling systems within Hydroelectric-powered Bitcoin mining ensures optimal operating temperatures for the equipment, while minimizing costs. Ensuring a reliable environment with minimal downtime.
Bitcoin mining is the optimal solution enabling energy producers to capitalize on otherwise wasted Hydroelectric power
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Bitcoin's energy mix already comprises 23% of Hydropower, steadily increasing.
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Hydropower provides about 20% of the world's electricity, offering a huge opportunity for low-carbon Bitcoin mining.
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In France, 90% (more than 2’000) Hydropower plants are run-of-river, producing 30 Twh annually.
How Norway leads the way of Hydropower Bitcoin mining
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100% of Norway’s electricity production is green, with 0 carbon footprint: 92% Hydropower, 7% Wind power, and the rest from Natural gas.
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With a consumption of 250 MW, estimates indicate that the Norwegian share of the global hashrate production is almost 3%.
Excess Hydropower
Due to limited transmission capacity, transfer restrictions and low demand, some regions of Norway have high amounts of stranded energy. Bitcoin mining in Norway is able to contribute to the country’s energy sector by utilizing surplus energy generated by Hydropower plants. By using this excess energy, Bitcoin mining helps reduce the wastage of energy, increasing producers revenue and promoting sustainable practices.
" Thanks to its stranded Hydropower, Norway has become the biggest Bitcoin mining hub in Europe. Colossal power price differences between regions incentivize all Bitcoin miners in Norway to operate in the middle and northern parts of the country, enjoying abundant stranded energy."