Cryptocurrency Mania in Texas Risks New Costs and Strains on Shaky Grid

tech.hindustantimes.com:

David Naylor’s knowledge of cryptocurrency was limited, to say the least, when Bitcoin miners started approaching him last year about buying power from the utility he runs across a 16-county stretch of rural Texas.

“I was writing it down, B-i-t-c-o-i-n,” said Naylor, chief executive officer of Rayburn Country Electric Cooperative Inc., which provides power to about 229,000 customers — mostly small towns and homes — north and east of Dallas.

Naylor has had to get up to speed quickly. He’s received multiple proposals to build Bitcoin mines, with rows of electricity-guzzling computers that solve mathematical problems to create digital coins, on what’s now ranch land. Two of the mines would each require as much as $20 million to fortify power lines and avert blackouts. Each would consume enough electricity to power as many as 60,000 Texas homes. Utilities like Rayburn have to provide service to miners if it’s technically feasible to do so, but upgrades to the grid threaten to drive up bills for consumers already shouldering price shocks for almost everything.

Rayburn’s talks with Bitcoin miners illustrate the conundrum utilities face as crypto companies like Riot Blockchain Inc. and Argo Blockchain Plc flock to Texas, spurred by almost nonexistent regulation, relatively cheap electricity and Governor Greg Abbott’s quest to make the state the global center for crypto mining. Besides threatening to boost power bills, the dozens of Bitcoin mines proposed are also a risk to the state’s shaky power grid after a deep freeze last year left hundreds dead and pushed up prices so much that utilities were left with massive debts or bankrupted.

“These are just challenges we’ve never faced before,” Naylor said in an interview.

Texas utilities