Bitcoin mining has been heavily criticized for its high energy consumption, but in Japan, an innovative initiative is changing this narrative.
Agile Energy X, a subsidiary of Tokyo Electric Power Company (TEPCO), has begun using surplus renewable energy to mine bitcoins, a move that not only monetizes wasted energy but also helps stabilize the power grid and potentially secure Japan’s carbon neutrality goals.
Recently, the company's president, Kenji Tateiwa, highlighted Bitcoin mining as an innovative sector that can transform the Japanese energy landscape and generate significant economic resources for the country.
Bitcoin can stabilize green energy production
Renewable energy production in Japan, particularly solar, has been facing significant challenges. As highlighted by local newspaper The Asahi Shimbun, during peak solar power production, power supply can outstrip demand, leading power companies to implement output controls that result in a lot of wasted energy.
The paper published a study in 2023, highlighting that approximately 1.920 gigawatt-hours of energy were subject to output controls, wasting enough energy to power 450.000 homes for a year.
Tokyo Electric Power Company subsidiary Agile Energy X has identified this inefficiency as a major opportunity to transform this energy surplus into a valuable and sustainable resource.
By installing Bitcoin mining machines in areas where renewable energy exceeds demand, the company can use this surplus to mine cryptocurrency. Tateiwa said Bitcoin mining is not only viable, but can also be a catalyst for the expansion of sustainable energy sources in the country and the world.
The economic potential of Bitcoin mining
In addition to mitigating clean energy waste, Bitcoin mining can also contribute to the monetization of surplus energy, representing a significant injection of capital for Japan.
Agile Energy X ran a series of simulations that show the risk to Japan’s energy stability if 50% of the country’s energy comes from renewable sources by 2050. According to these simulations, up to 240.000 gigawatt-hours of electricity could be wasted.
Regarding monetization, the company also highlighted that by using just 10% of this surplus energy, Japan could generate up to 360 billion yen, equivalent to about $2.500 billion, annually in revenue from Bitcoin mining. Thus, Agile Energy X points out that this energy model can not only help stabilize the Japanese energy sector, but could also provide a profitable new revenue stream for surplus renewable energy producers.
A Sustainable Future for Japan
As Japan moves toward its goal of carbon neutrality by 2050, combining Bitcoin mining and renewable energy could play a crucial role. Implementing this strategy would not only help monetize wasted energy, but could also attract investment in sustainable energy technologies. As Tateiwa notes, “If Bitcoins provide a new revenue stream for green energy producers, that would drive the introduction of more green energy.”
Agile Energy X’s experience could also serve as a model for other nations facing similar challenges in managing their renewable energy production.
On the other hand, the company's approach aligns with global trends in cryptocurrency mining, where a growing number of miners are looking for more sustainable energy sources to maintain their operations on the blockchain network with the lowest environmental impact. Thus, with the growing pressure to reduce carbon emissions and maximize energy efficiency, Bitcoin mining could be an innovative and sustainable solution.
