Middle Eastern researchers show solar-powered Bitcoin mining is profitable and sustainable in the region, with a return on investment in 3,5 years.
In an effort to combine cryptocurrency technological innovation with environmental sustainability, a group of Tehran-based researchers have demonstrated that Bitcoin mining using solar energy can be highly profitable in the region.
Researchers published a recent study in the journal Heliyon, titled “Renewable energy and cryptocurrency: A dual approach to economic viability and environmental sustainability”, which reveals that Bitcoin mining using solar energy not only significantly reduces the network’s carbon emissions – by up to 50.000 tons per year – but also offers a return on investment (ROI) in just 3,5 years. The experts noted that this return is especially short compared to the 8,1 years it would take to sell the electricity generated by a photovoltaic system to the conventional grid.
A dual approach to Bitcoin mining
The study, led by Ali Hakimi and his team at KN Toosi University of Technology in Tehran, simulated the operation of a 50,91 megawatt (MW) solar plant combined with a 9,3 MW Bitcoin mining farm in the United Arab Emirates. The researchers analyzed historical Bitcoin price data and energy costs to assess the project’s economic and environmental viability over time.
The results, according to the study, are promising. They indicated that an initial investment of approximately $42 million could be recovered in 3,5 years if solar energy is used exclusively for Bitcoin mining.
In contrast, selling the electricity to the conventional power grid would extend the payback period of the initial investment to more than 8 years. In addition, using solar energy to mine the cryptocurrency would reduce carbon emissions, mitigating the grid's impact on environmental sustainability and contributing to the fight against climate change.
Solar energy is a sustainable solution in the Middle East
Bitcoin mining has been criticized for its high energy consumption and environmental impact, especially when using electricity generated from fossil fuels. However, the study suggests that the integration of renewable energies, such as solar, could transform this industry into a more sustainable model.
In regions such as the Middle East, where solar radiation is abundant, photovoltaics are presented as a viable alternative for this activity. Researchers highlight that solar infrastructure not only benefits Bitcoin and other cryptocurrency mining, but can also be used for other purposes once mining is no longer profitable, thus promoting a sustainable investment cycle.
“Integrating renewable energy sources, such as solar power, into these [crypto mining] systems could enable more sustainable and environmentally friendly operations.”, they pointed out the researchers.
The study indicated that countries such as United Arab Emirates and Iran have great potential to power large-scale solar-powered Bitcoin mining facilities.
Beyond energy consumption
In addition to energy consumption and sustainability, the study also addresses the issue of electronic waste (e-waste) generated by Bitcoin mining. According to the researchers, frequent upgrading of mining equipment produces approximately 38 metric tons of e-waste, underscoring the need for recycling policies and more durable hardware design.
From an economic perspective, the researchers said that solar Bitcoin mining could attract investments in renewable energy, especially in countries with high levels of solar radiation. They suggest that governments and private companies could collaborate to develop energy infrastructures that benefit both the cryptocurrency industry and local communities, an approach that Russia is already considering. The Russian government is already exploring how this synergy could allow for more efficient use of available energy resources, while encouraging innovation in the crypto sector.
The future of sustainable crypto mining
Although the study focuses on the Middle East, its findings are applicable to other regions with favorable solar conditions, such as solar irradiation, weather conditions, among others. The researchers propose that Bitcoin mining could serve as a «virtual energy storage», using excess electricity generated during the day to power mining operations and returning it to the grid at night.
If this approach is implemented, Bitcoin mining would not only optimize the use of solar energy but would also contribute to the stability of the power grid. Furthermore, researchers suggest that solar-powered cryptocurrency mining could be a key tool to accelerate the transition to a cleaner and more efficient energy system.
Overall, the study of crypto mining in the Middle East offers an innovative insight into how the Bitcoin blockchain and its mining activity can align with the goals of environmental sustainability and economic profitability. By harnessing solar energy, this industry could reduce its carbon footprint while also offering attractive financial returns.
In a world that is increasingly aware of climate change, the implementation of more renewable energy sources such as solar could usher in a new era for cryptocurrency mining, where technological innovation and environmental responsibility go hand in hand.
