Several inquiries have arisen concerning the new modules operating at electrical substations located to the north and west of Bemidji. These modules are, in fact, crypto mining facilities that require substantial amounts of electricity, benefiting from their closeness to high-voltage power transmission lines originating from power stations in central North Dakota. However, the immense energy consumption associated with these operations poses significant risks to both the environment and public health. Crypto mining, the process through which cryptocurrencies are generated, is accessible to both individuals and businesses. Typically, while one operator reaps the financial rewards, local job opportunities remain scarce.
A recent investigation revealed that Chinese entrepreneurs are engaged in mining activities across at least 12 U.S. states. While these miners profit, local communities endure the detrimental effects of increased atmospheric pollutants due to the heightened electricity generation required for mining activities. The implications of crypto mining extend to electrical cooperatives, including our local electric cooperative, which is among many that supply electricity facilitating the operations of these crypto miners, who compete for profitability in the cryptocurrency market. These miners invest in maintaining and cooling their clusters of computers, which perform the necessary calculations for cryptocurrency creation. It’s not uncommon for these computer assemblies to overheat and even catch fire.
### The Impact of Crypto Mining on Electricity Markets
What does this signify for electrical cooperatives and energy markets? Crypto mining introduces a new dynamic to the electricity market that has not existed before. Traditional energy demand is characterized by peak and off-peak periods throughout the day. Crypto mining operations can utilize the off-peak periods by introducing new loads into the system. Generally, increased power generation allows power plants to operate more efficiently, as they must generate enough electricity to meet peak demands, which typically occur between 4 and 7 p.m. A generation cooperative supplies power to a network of distribution cooperatives, which then deliver electricity to households and local businesses, including schools and factories that contribute to local employment.
In comparison to individual households responsible for a small carbon footprint, a single crypto mining operation can generate a carbon footprint equivalent to that of thousands of homes. Presently, crypto mining facilities in the United States consume around 2.3% of the nation’s electricity, surpassing the energy consumption of Poland. These mining operations purchase power directly from the substations through distribution cooperatives, helping to maintain generation plants near their peak production levels. Often, these clusters of computers are strategically situated near distribution substations and acquire off-peak electricity at rates negotiated between the cooperatives and the miners.
### Environmental Concerns of Electricity Generation
The issue arises when considering the environmental consequences of electric power generation. The most significant detrimental effects stem from the combustion of lignite coal, which fuels power plants in North Dakota. Increased power production leads to higher carbon emissions from these facilities. Alongside carbon, harmful by-products such as mercury are released, some of which may be captured and disposed of in landfills as mandated by law. The strategy of maintaining power generators near their peak performance to support crypto mining largely overlooks the health and environmental ramifications of coal combustion. A single coal-fired facility can emit hundreds of pounds of mercury annually, contributing to the worsening weather patterns observed across the nation, including wildfires, flooding, invasions of destructive pests, unprecedented windstorms, and intensified hurricanes.
While there has been a decline in household electricity consumption, the overall demand continues to rise. It’s impractical to shut down coal plants without establishing alternative energy sources. Moreover, measures to sequester carbon emissions are necessary; some plants are in the process of developing technologies to inject carbon dioxide into geological formations, which, while promising, are not yet operational.
### Reassessing the Role of Crypto Mining in Energy Production
Permitting crypto mining to sustain generator operations amid escalating atmospheric carbon levels that contribute to climate change presents significant challenges. It may be prudent for rural electric cooperatives to focus on minimizing their carbon emissions while still addressing the needs of their local members, without endorsing the crypto mining industry.
