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Riot Platforms at the Heart of Texas' Debate Over Bitcoin Mining’s Effect on the Grid

Texas, the largest power producer in the US, is also a major hub for bitcoin mining, with 1.5 GW of mining as of August 2022. The Electricity Reliability Council of Texas has been criticized for using economic incentives to align miners' interests with those of the public, as local residents and legislators claim that the state is subsidizing an industry that is harmful to the environment and local communities. Riot Platforms, one of the largest bitcoin miners in the world, is facing scrutiny for developing two sites in Texas with a total energy capacity of 1.7 GW, which could power 340,000 Texan homes in the high demand season.

Bitcoin mining companies participating in ERCOT's demand response programs have been accused of causing unnecessary electricity price rises by ramping down early. Energy consultant Jason Cox suggests using demand response services to prevent this issue. Riot, a bitcoin mining company, has been accused of failing to make sufficient tax and community contributions by a residents' group. However, the industry argues that bitcoin mining can provide load flexibility and improve the profitability and stability of the grid.

Research from Texas A&M University suggests that bitcoin mining can provide load flexibility and mitigate market disruptions. However, residents in Navarro are concerned about the impact of Riot's mining site on their community, and environmental issues such as water usage and the consumption of non-renewable energy remain a concern. Riot declined to specify how much water it requires, but economic director Boswell believes the county can meet Riot's needs while satisfying local residents.

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