The idea for the project evolved in the middle of 2018 amidst unfavourable state policy toward renewable energy producers.
The present ecological situation and climate change force us to wonder what kind of energy we use and what would happen to us in the future. Fossil fuel is the source of the major share of energy, while renewables cover only a small percentage of consumption. With the advent of new energy-intensive technologies, one of which is cryptocurrency mining, the need for enhancing the development and construction of renewable energy plants is becoming apparent.
At the same time, renewable electricity producers often encounter reluctance of bureaucratic entities and political elites, closely related to oil and gas monopolies, to support green electricity production, and, in some cases, face deliberate intention to impede their development. New unreasonable requirements from regulatory authorities limit producers’ opportunities, and, for many of them, further work becomes impossible. The same may be said about plans for new green power plants development, since political and bureaucratic obstacles connected with oil and gas sector lobbying, limit industry members’ flexibility.
ETB HAS BEEN DEALING WITH WIND ENERGY PRODUCTION IN LATVIA FOR A NUMBER OF YEARS
As a solution, we consider diversification and creating a model, where renewable electricity is used for cryptocurrency mining, and proceeds from the cryptocurrency sale are invested in the further development of green energy production. This model will allow the company to assess perspectives for successful work of power plants without state support. The transition towards such a funding model will considerably improve producers’ possibilities, and would eventually be able to lay the groundwork for the creation of a new, blockchain-based, electricity generation and trade system.
Combination of mining and electricity production has additional benefits. Electrical energy demand within 24 hours is uneven: there are peak demand hours, and there are hours when the demand is low, but production remains the same. Accumulation could become a way-out. However, it is technically impossible to accumulate a great amount of electrical power to provide it to the grid during periods of high demand, because there are still no accumulators that would meet the challenge and not affect the electricity price. An alternative is either to reduce production or to create artificial consumption. Consuming electrical power at the time when it is not used, mining units can effectively serve as such facilities. An imbalance between demand for and supply is thus regulated through mining, which eventually has a beneficial effect on the electrical grid.