Brazilian renewable energy providers are considering Bitcoin mining projects to boost energy consumption near their facilities and minimize production interruptions mandated by the National Electric System Operator (ONS).
This issue has led to significant financial damages for businesses, according to executives and sources speaking to Reuters.
Bitcoin mining in the country remains relatively low-key, involving machines that solve intricate math problems to verify cryptocurrency transactions, attracting attention due to its high energy consumption and versatile demand characteristics.
Bitcoin miners can use excess energy to operate, which can help offset generation cuts caused by low demand or issues in the electric grid.
By passing on this burden to the younger generation, you can reduce the impact of the increasing generation shutdowns, which have reached extremely high levels in certain instances, according to José Roberto Oliva, a lawyer at Pinheiro Neto who specializes in this area.
The House of Winds, in partnership with French TotalEnergies, Atlas Renewable Energy managed by GIP, and Renova Energia are among the energy producers assessing potential projects of this kind, according to executives from these companies speaking to Reuters.
More focused on bitcoin
Engie Brasil and Auren Energia are among the other potential bidders engaged in initial discussions, as reported by anonymous sources. When contacted, the companies declined to provide any comments.
Businesses involved in the research vary in structure and partners, which could include selling energy exclusively to bitcoin mining firms, collaborating with data center operators serving these companies, or engaging in direct discussions with manufacturers of bitcoin mining equipment, potentially with the generator as a partner in the project.
The system reduces.
The reduction of electricity generation, known as “curtailment”, is a major issue facing the renewable energy industry in Brazil.
Some parks have limitations on wind and solar power plant production that are over 40% of their potential, leading to a significant rise in financial losses. For wind power alone, losses have already reached R $ 4 billion from mid-2023 to July this year, as reported by ABEE.
Renova Energia plans to utilize the unused infrastructure at the Alto Sertão III wind complex to cater to local demand by setting up traditional data centers or potentially engaging in bitcoin mining, according to CEO Sergio Brazil.
Some factors can prevent projects from being easily implemented, including the expensive importation of equipment and the challenges in forecasting future generation cut levels, according to experts and executives.
“For this kind of investment, you must have a certain level of predictability regarding the effectiveness of the energy available. It is deemed a creative solution, but entails high risk, and I doubt it will occur on a large enough scale to impact the current scenario,” stated CPFL Energia CEO Gustavo Estrella.
