Agile Energy X Inc., a subsidiary of Japan’s largest power producer, Tokyo Electric Power Co., is exploring Bitcoin mining as a solution to curb the waste of renewable energy and foster its widespread adoption.
The Tokyo-based subsidiary plans to power Bitcoin mining – the process of creating new units of Bitcoin – using renewable energy sources, as reported by Asahi Shimbun. This initiative was sparked by the “output control” measures implemented by Kyushu Electric Power Co., another prominent Japanese energy company. These measures require renewable energy producers to adjust their output or temporarily halt power generation to prevent oversupply, leading to wasted energy capacity.
Agile Energy X has strategically placed Bitcoin mining machines near solar farms. These machines operate when there is an anticipated surplus of energy, effectively utilizing the excess capacity and preventing waste. “What we are doing has few parallels in Japan,” remarked Kenji Tateiwa, president of Agile Energy X.
Fred Thiel, CEO of leading Bitcoin miner Marathon Digital, praised this innovative approach, stating, “Innovative Japanese utility company mines Bitcoin to utilize surplus energy…maybe US utilities should wake up and smell the roses.”
This grid-balancing strategy is not unique to Japan, as similar efforts are prevalent in the U.S., particularly in Texas, a leading hub for Bitcoin mining. Miners often power up their operations when there is excess electricity capacity, while scaling down during periods of high demand.
During the heat waves of June 2022 and September 2023, Bitcoin miners in Texas played a crucial role in stabilizing the state’s power grid. Their ability to quickly reduce their energy consumption helped prevent blackouts, highlighting the potential of cryptocurrency mining to contribute to efficient energy grid management.
The initiative by Agile Energy X is a testament to the evolving landscape of energy utilization. By leveraging Bitcoin mining to address the challenges of wasted renewable energy, Japan is demonstrating a forward-thinking approach to sustainable energy practices.
