TL;DR Breakdown
• ERCOT expects energy agencies in Texas to present their proposals to end electrical problems.
• Crypto miners believe their workload could double in the next few years.
Recently Texas asked all crypto miners to apply for a permit to mine BTC. According to reports, the regulatory body took this measure because electricity consumption increased multiple folds since BTC mining operations began in the state in 2021.
Over the last week, the company that distributes energy in the territory asked public operators to investigate the effects of crypto-mining activities in Texas. The agency says that BTC farms should apply for a license to operate legally within the state.
Texas’ growing crypto-mining industry
As one of the major states to embrace decentralized technology in the US, Texas seems to be concerned about the impact of crypto miners on the electrical system. These concerns are fueled by the expansion of existing BTC farms and new crypto companies setting up shops in the state. The electricity regulator in the state, the Electric Reliability Council of Texas (ERCOT), indicates that energy consumption for Bitcoin mining activities could continue to grow in the next two years.
Regulatory agencies in Texas say they still don’t understand how the system handled the power demands during the winter months of 2021. However, it looks unlikely that this trend will continue unchecked because of the growing number of crypto mining farms in Texas.
The regulatory body has proposed a regulation system limiting mining farms and other high-energy consumers to avoid an electrical catastrophe in the state. Now, these operations must first present the project to ERCOT and await their approval.
Crypto miners’ plans in Texas
According to reports, the crypto miners would double their Bitcoin extraction work for the next two years. This would be one of the most serious problems that electricity companies in Texas would face, so they would have to focus on plans within their limits.
The CEO of the Texas Blockchain Council said they are entering negotiations with ERCOT, so the new regulations do not affect their operations. Crypto miners in Texas would be affected by this restriction. It would also affect the operations of hydrocarbon companies operating in the state.
One of ERCOT’s regulations states that companies that consume over 25 megawatts daily must report it to the electric agencies in Texas. This measure only applies to companies dependent on state energy. Companies with their energy sources have more liberal consumption limits.
Energy companies in the state could announce their plans in the coming days. ERCOT will prioritize protecting energy production and consumption in the state to avoid a catastrophe.
