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Large-scale Crypto Miners in Texas May Struggle With New Policies

Published 03/31/2022, 06:18 AM
Updated 03/31/2022, 06:30 AM
© Reuters.  Large-scale Crypto Miners in Texas May Struggle With New Policies
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  • Crypto miners in Texas are facing new challenges with the “approval to energize” studies.
  • The first notice was announced on March 25.
  • The Electric Reliability Council of Texas will vote next Wednesday to hash out details.

Crypto miners in Texas are now facing a new challenge after the government is discussing the decision of requesting “approval to energize” studies from high-scale miners, Bloomberg reported.

Bloomberg shared the news on Twitter (NYSE:TWTR), with the caption, “Power-hungry crypto miners will face new hurdles in connecting to Texas electrical networks, thanks to new rules from the state’s grid operator.”

Meanwhile, the Electric Reliability Council of Texas Inc. (ERCOT) has started asking utilities to submit studies stating facts about the impact of miners and other large energy users. These studies will be a factor in determining whether they get the “approval to energize” or not.

As announced in a notice on March 25, ERCOT members will vote on Wednesday to reach an agreement and hash out details of a well-set plan to avoid being overwhelmed by the changes.

This came as a reaction to the high demand for electricity that comes from crypto miners. These measures are also a way to reform the previous policy ERCOT had used during the past period of time.

Lee Bratcher, president of the Texas Blockchain Council, commented regarding these changes.

We are entering into a dialogue with Ercot now to ensure that this does not cause any delays for the Bitcoin miners.

As a result of the new measures, large-scale miners will be affected as they are considered to be big energy consumers. Other big consumers such as factories and natural gas export terminals will also be affected, yet they are not the target here.

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