New study finds energy intensive Bitcoin mining could help cut emissions

As Bitcoin’s prominence in the financial world has grown, one constant remains: the energy-intensive process of mining. In 2023, the energy consumed by Bitcoin mining equaled the carbon footprint of Poland, while some large-scale operations use as much electricity as a small city each day.

However, a recent study conducted by the Bitcoin Policy Institute examined potential solutions to reduce Bitcoin mining’s environmental impact. The report suggests that mining facilities could significantly cut carbon emissions by adjusting their operations to align with electrical grid demand.

By operating during off-peak hours, when energy demand is lower, Bitcoin miners could potentially reduce 4.4 million tons of CO2 emissions annually.

“Bitcoin miners often tout their ability to turn their machines off whenever electrical grids are stressed, but until now, the extent of miner flexibility has not been independently substantiated,” the report’s authors wrote. “We gathered detailed power usage data from 10 bitcoin mining companies in the U.S. and Canada and found that they curtailed power usage between 5% and 31% of the time.”

This strategy could contribute to an emissions reduction equivalent to removing nearly a million gasoline-powered cars from the road. This would work by leveraging Bitcoin mining’s growing reliance on renewable energy sources. Currently, more than half of Bitcoin mining, about 54.5%, is powered by clean energy such as solar and wind.

Because renewable energy production is not constant, as it depends on optimal solar or wind conditions, this creates a challenge when renewable power generation exceeds demand. The excess energy often goes to waste unless stored, both of which can be costly.

Off-peak Bitcoin mining offers an alternative by using this surplus energy that would otherwise be discarded. The study’s policy recommendations section says working with grid operators could be a cost-effective and environmentally friendly option for both miners and energy grids.