Japanese Power Giant TEPCO Ventures into Bitcoin Mining to Utilize Wasted Renewable Energy

Highlights:

• A subsidiary of Tokyo Electric Power is experimenting with using renewable surplus energy to mine BTC.
• Utilizing 10% of Japan’s wasted renewable power could yield $2.5 billion annually.
• Industry leaders like Fred Thiel praise Japan’s innovative approach to energy use.

Agile Energy X, a subsidiary of Tokyo Electric Power Grid (TEPCO), has started exploring Bitcoin mining with surplus green energy. Local outlet Asahi Shimbun reported on Sept. 8 that the company has already placed its Bitcoin mining units near solar farms in Gunma and Tochigi prefectures.

Agile Energy X president Kenji Tateiwa said the initiative’s success “would prompt more green energy to be introduced.” He added that the inspiration for the concept came from Japanese “output control” practices. In these practices, renewable energy production is sometimes curtailed — deliberately reducing output below potential levels to balance supply and demand or address transmission constraints.

#TEPCO's subsidiary Agile Energy X is exploring #Bitcoin mining using surplus renewable energy to prevent wastage in #Japan.

The initiative involves harnessing unused solar power near #Tokyo, aiming to reduce energy curtailment and promote green energy through profitable… pic.twitter.com/OLW8n3r6xC

— TOBTC (@_TOBTC) September 9, 2024

Agile Energy X Estimates $2.5 Billion Bitcoin Mining Opportunity

According to Asahi Shimbun, Japan’s output control practices resulted in the waste of 1,920 gigawatt-hours of power in 2023, equivalent to the annual electricity consumption of 450,000 households.

Agile Energy X conducted simulations indicating that if renewable energy were to represent half of Japan’s energy supply, up to 240,000 gigawatt-hours could be wasted annually. The company estimates that utilizing just 10% of this surplus power for Bitcoin mining could generate about $2.5 billion (360 billion yen) in Bitcoin each year. Tateiwa believes that profits from Bitcoin mining could enhance corporate earnings and support the expansion of green energy initiatives.

Tateiwa explained:

“Green energy producers have to operate their businesses on the assumption that part of the power they generate is wasted. If bitcoins were to provide a new source of income for similar power producers, who are being exposed to overinvestments, that would prompt more green energy to be introduced.” 

The concept has attracted attention from industry leaders, such as Fred Thiel, CEO of Marathon Digital Holdings, who commended Japan’s approach in a social media post. Similar initiatives are underway in the United States, particularly in Texas, using renewable energy for grid balancing.

While EU has been busy gaslighting Bitcoin, Japan has been busy researching it

This from the Asahi Shimbun (1 of the 5 largest newspapers in Japan:

“Green energy producers operate their businesses on the assumption part of the power they generate is wasted. If bitcoin provided… pic.twitter.com/kNa000eZZ8

— Daniel Batten (@DSBatten) September 8, 2024

Bitcoin Miners Face Production Decline and Rising Network Challenges in August

August output reports from Bitcoin miners varied widely. Many companies have acted to improve their processes in response to network challenges and higher power demand, particularly in Texas. As the Bitcoin network’s difficulty increases, miners are focusing on efficiency, cost management, and strategic investments to prepare for future challenges.

Bitcoin miners’ block subsidy rewards are now minimal. Experts suggest that the last halving event with a “significant, fundamental impact” on Bitcoin’s price was in 2016. In August, MARA (formerly Marathon Digital) experienced a 2% decrease in mining output from July, bringing it to 673 BTC. However, its hash rate increased by 11% to 35.2 EH/s. The company sold no Bitcoin during the month, ending August 31 with 25,945 BTC.

Riot Platforms mined 322 BTC in the last month by leveraging a power strategy to reduce energy costs during peak ERCOT grid demand. The company now holds over 10,000 bitcoins. Despite thwarting Riot’s takeover attempts, Bitfarms produced 233 BTC in August, down 8% from July, even though its hash rate increased by 2% to 11.3 EH/s. The company now holds 1,103 BTC worth $65.1 million, having sold 147 BTC and acquired 86 BTC.