Interview
Mining through the eyes of a grid operator
Bitcoin mining is rarely viewed from the electricity network itself. Ingrid Sollie analyses grid balance at a Northern European operator and sees miners as an unusual consumer: large, but switchable.
In conversation with
Ingrid Sollie — Netanalist, een Noord-Europese netbeheerder
Are miners a problem for the grid?
Sollie: 'A miner running at full power where the grid is already congested is a problem. A miner that can shut down within seconds when we ask is closer to an instrument.'
'We look for flexible demand. Most industrial processes cannot simply stop; data centres doing blockchain computation can. That makes them more attractive than their reputation suggests.'
Typical price curve on a windy day
Illustrative spot price profile; miners power down around peak hours.
What does curtailment mean in practice?
Sollie: 'We contract capacity that disappears on request. For the miner that is lost revenue in the moment, but it buys a lower base price or a payment. For us it is cheaper than an extra peaking plant.'
'What matters is that it is contractually hard. Voluntary promises do not help when the grid is stressed on a cold January evening.'
- Contractual curtailment capacity
- Quarter-hourly metering, not monthly
- Connections where surplus is structural
- Reuse waste heat where possible
Where does mining belong?
The difference is location and flexibility, not the technology itself. That is why the same company is welcome in one region and not in another.
When is mining grid-friendly?
| Situation | Effect on the grid | Verdict |
|---|---|---|
| Wind surplus, low demand | Absorbs otherwise lost energy | Useful |
| Stranded gas at oil sites | Replaces flaring | Useful |
| Congested grid, no flexibility | Crowds out other connections | Unwanted |
| Peak hour without curtailment | Raises peak demand | Unwanted |
What do you expect in coming years?
Sollie: 'More coupling between computation and generation. Those who produce their own power or deliver waste heat keep a durable model. Those chasing cheap electricity move every few years.'
'The debate will also shift from total consumption to the timing of consumption. Analytically that is a far fairer question.'
Ofte stilte spørsmål
Does mining consume power that households need?
It depends on location and timing. Flexible miners in surplus regions absorb energy that would otherwise go unused.
What is curtailable capacity?
Capacity the grid operator can switch off on request, in exchange for a lower price or a payment.
Can miner waste heat be useful?
Yes, for district heating or greenhouses, provided the installation sits close enough to the user.
About the author
Mathias graaft in on-chain data, liquiditeit en DeFi-protocollen. Hij bouwt de datamodellen achter de koers- en liquiditeitspagina's van Block #9.