Great unknown: How much energy crypto mining uses

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Apr 10, 2024 View in browser   By Arianna Skibell Presented by American Clean Power The cryptocurrency industry has been under scrutiny because of its energy use. | Claudine Hellmuth/E&E News (illustration); Freepik (computer, Bitcoin logo, cyber effects); Corrigan Company (Ameren Portage Des Sioux Power Plant) The exact amount of electricity used to mine cryptocurrency in the U.S. is a mystery. The U.S. Energy Information Administration estimates that computers “mining” digital currencies like bitcoin — by solving complex puzzles around the clock — eat roughly 0.6 to 2.3 percent of the nation’s power. But an ongoing lawsuit has stopped the Energy Department agency from collecting more detailed information, writes Jason Plautz. Without exact figures, the nation’s power providers cannot assess how the rapidly growing crypto industry will affect the electric grid in the future. That could pose a major problem for grid operators as the nation’s demand for energy increases in the coming years. The EIA estimates that demand could shoot up 15 percent by midcentury — numbers that Energy Secretary Jennifer Granholm said “literally” keep her up at night. Predicting the crypto industry’s demand for power is distinctly complex because the amount of electricity miners need in any given moment is determined by the price of their product — not by the weather or population growth, which are factors utilities are accustomed to navigating. That variability has led lawmakers and energy sector officials to call for more transparency into crypto mining’s energy use. Last year, eight Democratic lawmakers implored the Biden administration to issue a mandatory disclosure regime for the industry. In January, EIA Administrator Joe DeCarolis issued an emergency order requesting that 82 companies report the electricity used at their 150 mining facilities along with which sources of power they rely on. DeCarolis said the industry’s rapid growth and existing strain on the grid has created “heightened uncertainty” for power markets. That means there may not be enough power available to meet moments of high demand, leading to blackouts. But the industry protested. The nonprofit Texas Blockchain Council and mining company Riot Platforms filed a lawsuit accusing the EIA had not properly seeking public comment. And the groups said EIA’s “legally defective survey” would pose a risk to their operations. EIA agreed to withdraw its emergency survey and committed to seeking public comment before launching a new one. But the agency told Jason last month there is no update on timing.   It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.   A message from American Clean Power:  The story of clean power is one of American success. This growing industry provides over 460,000 jobs across the United States and is creating a new domestic manufacturing boom. Clean power is not just clean—it’s reliable, affordable, and American made. Learn more.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Jordan Wolman breaks down how a second Trump administration is looming over upcoming United Nations negotiations to secure a global plastics treaty.   A message from American Clean Power:   Power Centers A liquefied natural gas tanker is shown. | Steve Campbell/Houston Chronicle/AP Biden approves massive oil export terminal The Biden administration has approved a massive oil export terminal off the Texas coast, which if built, could ship up to 2 million barrels of U.S. crude oil daily to Asia and Europe, writes Heather Richards. The license issuance comes days after a federal appellate court upheld the Biden administration’s argument that the export terminal is in the national interest — a blow to environmental groups and climate activists who tried to reverse its approval. Trump allies target federal climate research Allies of former President Donald Trump don’t want to just thwart federal climate science if Trump wins a second term — they also want to upend the agencies that conduct and support such research, writes Scott Waldman. The strategy — which targets NOAA, the National Weather Service, and the National Hurricane Center — is included Project 2025, a road map for the next Republican president written by the Heritage Foundation and dozens of other conservative organizations. UN boss warns: No more ‘business as usual' Leading United Nations diplomat Simon Stiell said the world’s richest countries must end their “business as usual” approach to climate change or risk worsening global ills such as hunger and barriers to education, writes Nicholas Earl. “Too often, we’re seeing signs of climate action slipping down cabinet agendas,” he said, adding that politicians must embrace the “transformative potential of bold climate action.” In Other News Revealed: Documents show that FirstEnergy gave $1 million to boost Ohio Lt. Gov. Jon Husted’s campaign before scandal. Hindsight: This French aristocrat understood evolution 100 years before Darwin — and even worried about climate change.   Access New York bill updates and Congressional activity in areas that matter to you, and use our exclusive insights to see what’s on the Albany agenda. Learn more.     Subscriber Zone A showcase of some of our best subscriber content. Lawyers and members of the public attend the ruling at the European Court of Human Rights on Tuesday, in Strasbourg, France. | Jean-Francois Badias/AP The landmark ruling by a European human rights court on Tuesday could pave the way for future lawsuits forcing countries to cut their planet-warming pollution at a faster clip. The backlog of clean energy waiting to connect to the electric grid jumped significantly last year, reaching nearly 2,600 gigawatts, according to a new Energy Department report. The Biden administration has published its overhaul of methane regulations for public lands drilling, ahead of a deadline that could have made the policy vulnerable to future Republican attacks. That's it for today, folks! Thanks for reading.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.       A message from American Clean Power: Clean energy supports over 460,000 American jobs, powers tens of millions of homes, and delivers billions in investments each year to local communities.  As clean energy powers more homes and businesses than ever before, it's creating an American manufacturing boom. Over 120 new manufacturing facilities have been announced across the country—constructing the wind turbines, solar panels, and batteries that help our economy grow. The clean energy sector is committed to building on that progress—which is why technicians, installers, and engineers from the American Clean Power Association are on Capitol Hill this week to urge Congress to: Preserve tax incentives for the industry. Protect the right to build clean energy on private property. Pass bipartisan permitting reform. Learn more.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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