The second largest US energy corporation is currently studying bitcoin mining, according to leading rates and regulatory strategy analysts at Duke Energy Corporation. Lead analyst Justin Orkney said a bitcoin demand response (DR) study was being worked on and the energy firm has partnered with bitcoin miners who are enrolled in Duke’s DR programs.
Second largest US energy corporation researching bitcoin mining
The latest “Bitcoin, Energy and the Environment” podcast with Troy Krauss, called “Duke Energy Is Studying Bitcoin,” features Justin Orkney, principal rates and regulatory strategy analyst at Energy Corporation. In the episode, Orkney and the podcast host discuss the “usefulness of bitcoin” and the “really interesting opportunity” that pertains to energy demand response programs.
Basically, DR gives energy consumers the ability to operate the grid more efficiently by reducing or shifting loads. For example, with bitcoin mining, “by being able to strategically locate miners on the system — there’s an opportunity to partner with these types of customers,” Orkney said. While most of the conversation details Orkney’s background in solar and pilot studies on demand response, the analyst noted how bitcoin mining can be a powerful technology when it comes to DR components.
During the interview, Orkney insisted that some customers of Duke Energy (NYSE:DUK) were bitcoin miners. “We have existing customers on our system,” Orkney explained to the show’s host. “They are voluntarily enrolled in our demand response programmes. They basically agree to reduce usage at particular hours of the year when we call events. ,
‘Bitcoin mining appears to be a really powerful demand response technology’
In the US, most infrastructure such as transformers and transmission lines is more than two decades old. DR programs can allow grid customers, some of whom may be bitcoin miners, to help utilities manage peak demand. Inadequate transmission capacity can be managed more effectively to make older infrastructure more reliable. Orkney said it is possible that bitcoin mining is a technologically advanced DR method.
“Bitcoin mining seems to be a really powerful demand response technology where they can humming at 100% power factor, or use the same amount of power throughout the day called flatlines, and then within a few minutes they can do less.” They can use them at a pretty precise level and keep it for as long as they want and then bring it back up,” Orkney said.
Bitcoin mining has received a lot of negative attention over the past year in relation to energy use by the industry as the network reportedly consumes 91 terawatt-hours of electricity annually. However, many bitcoiners believe that concerns about BTC’s energy consumption are magnified when it comes to mining. Furthermore, a recently published study shows that the bitcoin network leverages 50 times less energy than the traditional banking system.
In addition, Environmental, Social and Governance (ESG) analyst, Daniel Batten, published a report indicating that bitcoin mining could potentially eliminate a significant amount of leaked methane and insisted that any technology could eliminate it. Can’t do better. Batten’s study suggests that a strategically placed bitcoin could eliminate 0.15% of global CO2-eq emissions by 2045.
Based in Charlotte, North Carolina, Duke distributes energy to approximately 7.5 million electric retail customers and operates in six states. The American Electricity and Natural Gas Holding Company manages 58,200 megawatts of electricity and Orkney points out that Duke is the second largest US energy corporation, if not the largest in specific sectors.
In addition to Duke Energy Corporation, reports have revealed that energy and gas giants such as Exxon Mobil (NYSE:XOM), Equinor, LaJio and ConocoPhillips are also exploring bitcoin mining solutions in the energy industry.
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