- The PUCT, backed by ERCOT, require crypto mines to register
- This is to avoid interruptions in access to electricity for fundamental functioning
- They try to regulate the side effects of mining like noise
- Violation of this rule carries a $25K per day fine
The Public Utilities Commission of Texas PUCT supporting the Energy Reliability Council of Texas (ERCOT) has established a new rule requiring crypto farms to register to be able to regulate uninterrupted access to electricity for Texas households.
More About the New Rule and the Reasons Behind It
As the need for computing grows – and as more and more computing farms pop up – the side effects of their operation become more noticeable in relation to the strain on the power grid and the daily lives of ordinary residents.
According to The New York Times article from 2023, the 10 largest Bitcoin mines were in Texas, using 1,212 megawatts (MW) of energy. Because they are “flexible load” facilities, their operation has had an uneven impact on the load of the energy infrastructure and this could create problems for access to electricity for many Texas households.
In addition, the noise from these Bitcoin mines is highly loud, especially for nearby communities, creating discomfort for residents, and some also complain of poor health. All of this has prompted the PUCT and ERCOT to introduce new regulations in an attempt to mitigate the effects of digital currency mining and impose a $25K per day fine on those who are unregistered.
PUCT Chairman Thomas Gleeson said:
“To ensure the ERCOT grid is reliable and meets the electricity needs of all Texans, the PUCT and ERCOT need to know the location and power needs of virtual currency miners. This is another example of the PUCT and ERCOT adapting to support a rapidly changing industrial landscape. Most importantly, we will always take the steps necessary to ensure reliable, affordable power for all Texans.”
Conclusion
The problem of the side effects of cryptocurrency mining has been around for some time, and the rise of AI – which also requires even more computing power – is making it worse.
So trying to regulate this by maintaining uninterrupted access to electricity and the basic functions that provide it does seem like a sensible measure.
Stay tuned.
