Cryptocurrency miners need approval from ERCOT to plug into Texas grid

Texas cryptocurrency miners must now get approval from ERCOT to connect to the state's power grid. State regulators said the new requirement is to ensure new large loads do not overwhelm the grid. Ever since China began cracking down on Bitcoin mining, miners have been rushing to Texas to take advantage of the state's cheap power prices, tax incentives, as well as the ability to connect to the grid quickly. In the next two years, cryptocurrency mining operations are expected to quadruple in Texas, according to the Texas Blockchain Council. This would put the Lone Star state on track to become the world's largest producer to Bitcoin in less than two years.

"This will put a massive amount of stress on the Texas energy grid," said William Magnuson, the author of Blockchain Democracy and a cryptocurrency legal expert at the Texas A&M Law School. "We know the Texas energy grid has had its struggles in the last couple of years so I do worry about the effects of imposing massive new energy use on a grid that we know is has been relatively unstable." During the 2021 deadly winter storm, millions of Texans went without power for days as the Texas grid failed in the freezing conditions to keep up with the demand. In the past year, steps have been taken to increase the power grid's capacity and to winterize power plants. Still, many energy experts believe the Texas grid remains vulnerable and a rush of high energy using cryptocurrency mining facilities could further stress the grid.