Electric vehicles (EVs) and cryptocurrencies are evolving in their respective spheres. Both entities differ in terms of operations, customers served, operating mechanisms, etc., but one thing they have in common is energy consumption. Over time, both have increased, which could lead to an increase in electricity usage, which is concerning.
Reuters reported that the North American Electric Reliability Corporation (NERC), the organization responsible for power grid reliability in the United States, has expressed concerns about the same. He said the adoption of EVs and cryptocurrencies is growing mining The increase will create more challenges for the country’s power reliability in the future.
EV production and adoption are thriving due to US inflation reduction legislation as well as government policy. While the use of bitcoin as a virtual currency is increasing, there is a trend towards increasing use in bitcoin mining, a very energy-intensive process. NERC added that given the fragile situation in the country’s power grids affected by the plant closures, given the demand, both would add to the pressure.
Mark Olser, Reliability Evaluation Manager at NERC, said the use of the new power will help determine the nature of the system, how it will operate, and what steps should be taken to ensure it can deliver the desired output. said that it could change significantly.
The agency cited data estimated by the California Energy Commission. This suggests that given the plug-in of EVs, the electrical load by 2030 could increase by an additional 5,500 MW at midnight and 4,600 MW on weekdays around 10 am. This shows jumps of 25% and 20% respectively compared to currency levels.
According to NERC, the upcoming expansion of Bitcoin miners with powerful computing power could potentially “significantly impact demand and resource forecasts.” Earlier this month, the Texas Electrical Reliability Council announced a voluntary power reduction plan for customers, including bitcoin mining businesses.
Grid demand will also increase as a result of non-EV energy transition strategies that rely primarily on home and business electrification, according to NERC. Coal, nuclear and natural gas plant closures are on the rise, while the addition of new generation capacity is slow.
According to NERC, the Southwest, Northwest, Texas, and New England have enough energy and capacity during normal periods, but could run short in extreme conditions. Meanwhile, California and the Midwest are at higher risk of power shortages from 2023 to 2027.