A UK-based Bitcoin organization is urging the new Labour government to implement a Bitcoin mining strategy to address the growing local electricity demand. Bitcoin mining offers various potential uses beyond network security, such as powering machine learning and large gaming setups. Bitcoin Policy UK advocates using Bitcoin mining to support sustainable grids and renewable electricity generation.
Bitcoin Mining and Renewable Energy
A report released by Bitcoin Policy UK on July 10 highlights that the Bitcoin mining industry, a major electricity purchaser, could help make the intermittent supply of power from renewable grids more robust and viable. The report emphasizes that Bitcoin mining provides a completely elastic demand for spare renewable energy, setting a floor price and monetizing otherwise unused energy.
The organization argues that Bitcoin mining could operate without government subsidies or payments, using stranded or wasted energy. The report suggests that Bitcoin mining is the perfect technology to address the viability issues of the UK’s energy ambitions, noting its absence in the UK market on a large scale.
Examples and Potential
In Texas, Bitcoin mining is already used as a flexible load, with miners providing an interruptible load that can be shut off instantly to respond to grid demand and repowered afterward. The report claims this approach could solve the commercial viability issues of the UK’s energy security strategy targets, assuring renewable energy providers of a buyer for all the energy they produce.
Government and Industry Response
Bitcoin Policy UK is pushing for this new strategy following the UK elections on July 4, which resulted in a Labour government. The new government announced plans to establish a National Wealth Fund worth £7.3 billion to support green industries. The local crypto community has called for a more consistent policy on crypto.
Freddie New, co-founder and head of policy at Bitcoin Policy UK, expressed hopes for policies that protect and preserve the rights of UK citizens who hold Bitcoin. He noted that the previous government aimed to turn the UK into a “crypto hub” but fell short due to poorly conceived regulation. New highlighted the untapped potential of the Bitcoin mining industry for stabilising and monetising sustainable power grids and reducing methane and biogas emissions if co-located on farms or near landfills.
Bitcoin Policy UK looks forward to collaborating with the new government on Bitcoin-related policies, aiming to leverage Bitcoin mining to enhance the UK’s renewable energy grid and ensure energy security.
