Japanese energy giant enters mining, TEPCO mines Bitcoin with green energy

In the past, our imagination of cryptocurrency mining farms has been rows of machines running non-stop in data centers. But have you ever thought about energy companies getting involved in mining cryptocurrencies themselves? According to local media reports, a subsidiary of the Japanese power giant Tokyo Electric Power, called Agile Energy X, has entered the Bitcoin mining market. It is understood that the company plans to use renewable energy to mine Bitcoin in order to ensure that electricity is not wasted.

Using Renewable Energy for Mining to Prevent Power Waste

Tokyo Electric Power Company (TEPCO) subsidiary, Agile Energy X, has entered the Bitcoin mining industry. The company believes that this move can help prevent wastage of electricity, as there are times in Japan when the production of renewable energy is restricted. This intentional reduction in output below the potential production level is done to balance supply and demand or align with transmission constraints.

CEO of the company, Kenji Tateiwa, was inspired by a large-scale "output control" implemented by Kyushu Electric Power Company in 2018, which raised some issues.

Electricity supply must always be balanced with demand, as any imbalance can disrupt power frequency, leading to widespread blackouts.

As a result, Kyushu Electric Power requested renewable energy producers to control their generation or temporarily halt production to prevent excess power supply, especially during peak daytime generation. This meant that valuable generation capacity had to be wasted.

Bitcoin mining requires high-powered mining machines that consume a significant amount of electricity. Participants earn Bitcoin as a reward for verifying transactions. This process, known as Bitcoin mining, is similar to mining for gold.

Kenji Tateiwa came up with the idea of combining these two concepts, using excess electricity for Bitcoin mining. Agile Energy X has installed mining machines in Gunma and Tochigi Prefectures, with one located near a solar power plant.

The Company Estimates Mining Surplus Electricity Could Generate $2.5 Billion in BTC Annually

According to data from Asahi Shimbun, by 2023, 1,920 gigawatt-hours of electricity nationwide in Japan will be subject to output control, equivalent to the annual electricity consumption of 450,000 households. Agile Energy's simulations indicate that if renewable energy accounts for 50% of Japan's power supply, approximately 240,000 gigawatt-hours could be wasted annually due to power limitations. The company estimates that using 10% of the surplus electricity for Bitcoin mining could generate around 360 billion yen ($2.5 billion) worth of BTC annually.

Regarding the future of this project, Kenji Tateiwa stated that if BTC mining can generate profits that could become a part of the company's earnings, more green energy could be introduced.