coindesk.com
Britain could use bitcoin BTC$66,834.89 mining to help reduce the more than 1 billion pounds ($1.32 billion) paid to wind power generators to switch off, according to a Bitcoin Policy Institute (BPI) report shared exclusively with CoinDesk.
The proposal centers on Scotland, where wind generation has expanded faster than the transmission infrastructure needed to transport electricity south to the areas of highest demand in England.
Grid operators pay Scottish wind farms to stop generating electricity while paying gas-fired power stations elsewhere to increase production.
The “Britain’s Biggest Opportunity” report, by BPI executive director Conner Brown and head of regulatory affairs for Xapo Bank Joey Garcia, argue that bitcoin mining could provide an alternative outlet for some of otherwise curtailed electricity.
“Traditional data centers can contribute, but most require firm, uninterrupted power near metropolitan fibre hubs and cannot profitably shut down whenever the wind stops blowing,” the report explained.
“Bitcoin mining is different: it is modular, quick to deploy and relocatable (requiring only a power source and an internet connection), able to curtail fully and for long periods without disrupting any customer’s workload, and viable at partial utilization when consuming low-cost or otherwise curtailed power.”
The report cites research involving ten mining companies that found facilities curtailed electricity consumption between 5% and 31% of the time in response to grid conditions.
It recommends that the Department for Energy Security and Net Zero (DESNZ) and National Energy System Operator (NESO) assess whether mining facilities could be located behind transmission bottlenecks, particularly along the Scotland-England boundary.
However, the report acknowledges that the 1 billion pound-plus annual constraint bill does not represent the amount bitcoin mining could save. Any proposed projects would require modeling of actual consumer savings, emissions and infrastructure costs.
Britain’s bitcoin competitivness
The energy proposal forms part of a broader assessment arguing that Britain has established strong legal foundations for bitcoin but risks undermining its competitiveness through inconsistent regulation.
Britain’s banking restrictions, investment rules and tax policies are undermining its opportunity to become a global bitcoin hub, according to the report.
The report argues that the U.K.’s strong legal framework establishes important foundations, yet practical barriers remain as the country prepares to introduce its comprehensive cryptocurrency regulatory regime next October.
A particularly striking contradiction concerns retail investment products. The Financial Conduct Authority (FCA) lifted its ban on retail access to crypto exchange-traded note (ETNs) over a year ago, only for tax changes introduced in April this year to exclude purchases in Stocks and Shares ISAs, one of the most common investment accounts employed by retail investors.
