Power Shortages
The Electric Reliability Council of Texas (ERCOT) manages 90% of Texas’s electricity load. On Sunday, the agency addressed residents and businesses, asking them to conserve electricity due to “record high electric demand” expected on Monday. The agency predicts that electricity demand in Texas will peak at 79,671 megawatts, slightly below the available 80,083 megawatts.
Demand for electricity in Texas increased partly due to extreme heat, reaching up to 110° F (43°C), forcing the residents to run air conditioners.
Crypto Miners Shut Down Operations
As reported by Bloomberg, almost all large Bitcoin miners have shut or powered down mining operations in Texas to reduce the impact on the electric grid. On a Monday, Core Scientific Inc tweeted that they powered down ASIC servers in the state until further notice. Other major crypto mines, Riot Blockchain (NASDAQ:RIOT) and Argo Blockchain, reportedly reduced their operational capacity.
President of Texas Blockchain Association, Lee Bratcher, told Bloomberg that over 1,000 megawatts in mining load have already responded to the state’s request.
Crypto Mines Face Power Challenges in Texas
Major crypto mines like Riot Blockchain Inc., Argo Blockchain Plc, and Core Scientific Inc flocked to Texas because of its low energy costs and liberal regulations on crypto mining.
However, the mining firms operating in Texas are facing challenges related to power shortages. Since 2021, miners had faced similar challenges during the winter months, when the electric grid was shut down due to low temperatures.
In February, Riot Blockchain reportedly shut down 99% of its operations before a possible winter storm and high electricity demand.
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Source: Cryptocurrency - investing.com
