High Prices Trigger Miner Curtailments
A record-setting heat dome that recently blanketed the eastern United States and forced the U.S. Department of Energy to issue emergency orders put the heat on bitcoin miners operating within or drawing power from the regions affected by the directive. The department’s directive authorized the PJM Interconnection to deploy additional generation units and tap backup power resources as needed.
The grid operator, which serves approximately 67 million people across 13 states and Washington, D.C., recently issued hot-weather alerts as triple-digit temperatures drove electricity demand toward historic highs. U.S. Energy Secretary Chris Wright said at the time that maintaining uninterrupted service across PJM’s territory was a national priority as the heat wave intensified and late-afternoon demand spiked.
Wholesale electricity prices surged due to the increased demand, squeezing miners on variable-rate contracts. Furthermore, with demand-response programs activating, some miners voluntarily curtailed operations during peak hours. In some cases, operators are forced to throttle ASICs or shut down rigs after cooling systems hit thermal limits.
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