Giant Japanese Power Company Explores Bitcoin Mining with Renewable Energy
A subsidiary of TEPCO, Japan’s leading electricity provider, is using waste solar energy for Bitcoin mining. Tokyo Electric Power Company (TEPCO) is entering the Bitcoin mining sector. Through its subsidiary, Japan’s largest electricity supplier has begun using excess renewable energy for Bitcoin mining. Agile Energy X, a wholly-owned subsidiary of TEPCO, is conducting experiments using surplus solar power to operate Bitcoin mining equipment, as reported by a local media outlet citing its CEO.
The company has installed mining equipment near solar farms in Japan’s Gunma and Tochigi prefectures to utilize energy that would otherwise be wasted. The initiative helps reduce the waste of green energy from solar and wind farms thatare forced to reduce their output to avoid overloading Japan’s grid. Kenji Tateiwa, founder and CEO, believes that the success of the project could encourage more investment in clean energy linked to Bitcoin mining.
Bitcoin mining will encourage green energy. According to the local newspaper, production control techniques in Japan led to the waste of 1,920 gigawatt-hours of energy in 2023, which is equivalent to the annual electricity consumption of 450,000 households. Agile Energy X has run simulations indicating that if renewables supplied half of Japan’s electricity, up to 240,000 gigawatt-hours could be wasted annually.
Bitcoin Mining Could Generate $2.5 Billion Annually
Tateiwa stressed that the benefits of this activity could contribute to corporate profits, while incentivizing more companies in the country to replicate the effort in pursuit of sustainability. “Green energy producers have to operate their businesses under the assumption that some of the energy they generate is wasted,” Tateiwa said. “If bitcoins were to provide a new source of revenue to similar energy producers, who are exposed to excessive investments, that would bring in more green energy.”
Other countries, companies in the energy sector have applied similar approaches to obtain resources with which to mine bitcoins. In El Salvador, for example, geothermal energy from its volcanoes is being used to generate cryptocurrencies, while in Argentina, surplus waste gas from the oil industry is being used. The United States, especially Texas, is another country where renewable energy is used to balance the grid.
One example is the project of Marathon Digital Holdings, the world’s largest Bitcoin mining company, which has embarked on a new project that will heat an entire city in Finland with recycled heat generated from Bitcoin mining. TEPCO’s approach to the cryptocurrency industry is not new.
Agile Energy’s efforts are in response to a more general shift in Bitcoin mining toward green energy. A report by Coinshares noted that Bitcoin miners use renewable energy in remote areas and actively seek the cheapest energy. Data shows that 56% of miners now use renewable energy for their operations. Daniel Batten, an environmental analyst specializing in Bitcoin, noted that BTC’s sustainable energy mix has increased by 6% year-over-year, more than any other industry.
