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Deutsche Telekom’s MMS and Bankhaus Metzler are piloting Bitcoin mining to tap surplus renewable energy and stabilize Germany’s grid.
Deutsche Telekom subsidiary MMS and Bankhaus Metzler, Germany‘s second oldest bank, have launched a pilot project to explore the use of surplus renewable energy for Bitcoin (BTC) mining, aiming to gather field data that could help stabilize Germany’s energy grid.
In a Monday press release on Nov. 4, Deutsche Telekom said that the project will be powered by electricity from “renewable energy sources, which would otherwise remain unused due to insufficient grid input possibilities and/or lack of storage options.”
“The pilot project aims to provide valid field data and insights to plan subsequent projects.”
Deutsche Telekom
Hosted by Metis Solutions, the mining infrastructure is located at Riva GmbH Engineering in Backnang, where photovoltaic systems supply power to the miners, the press release reads. MMS will oversee operations, while Bankhaus Metzler will evaluate financial applications for cryptocurrencies.
Bitcoin mining as solution to balance renewable energy surplus
The initiative seeks to address challenges from rising renewable energy production, which often leads to surpluses when supply outpaces grid demand, with Deutsche Telekom noting that Bitcoin miners could play an “important role in balancing supply and demand in the energy grid in the future.”
Oliver Nyderle, head of digital trust & web3 infrastructure at Deutsche Telekom MMS, says the need for quickly available regulating power increases with the “growing number of renewable energy sources and the resulting fluctuations in available energy.”
Hendrik König, head of digital assets office at Bankhaus Metzler, says the eventual goal is to “gain experience” in various application areas to “further advance the innovative power of blockchain technology in Germany,” adding that blockchain technology is gaining “increasing importance in operational business outside the financial industry — and a trusted financial partner is indispensable for managing crypto assets.”