> ERCOT CEO Pablo Vegas and others gave shocking testimony today in the Senate Committee on Business & Commerce that within only six years (that’s only three legislative sessions), our power grid needs will grow from about 85,000 to 150,000 megawatts. That is much higher than the 110,000 megawatts they previously projected. The 110,000 megawatts was already a big increase, which is why the Senate pushed our incentive plan to build more dispatchable power last session. 150,000 megawatts is almost double the megawatts we now have on the grid.
> Later testimony said the growth is due to the increases in population, normal business growth, and Artificial Intelligence (AI). However, crypto miners and data centers will be responsible for over 50% of the added growth. We need to take a close look at those two industries. They produce very few jobs compared to the incredible demands they place on our grid. Crypto mining may actually make more money selling electricity back to the grid than from their crypto mining operations.
> Texans will ultimately pay the price. I’m more interested in building the grid to service customers in their homes, apartments, and normal businesses and keeping costs as low as possible for them instead of for very niche industries that have massive power demands and produce few jobs. We want data centers, but it can’t be the Wild Wild West of data centers and crypto miners crashing our grid and turning the lights off.
> The Senators asked why this had not been disclosed before today. #txlege
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The theory is/was that Texas grid works "best" (the market runs most efficiently) when its running at the most capacity (everyone with something that can generate power is making money - this is better than conserving and asking polluting or less efficent sources to spin down when the demand isn't there ... in theory) with the ability to have things that can't pay for the increased price (in theory, that was supposed to be crypto) scale back their use when other demand goes up.
Though the data centers are pivoting to AI. https://www.cnbc.com/2024/07/18/bye-bye-bitcoin-hello-ai-tex...
Though it's still significant. https://www.texastribune.org/2024/07/10/texas-bitcoin-mine-n...
The Real-World Costs of the Digital Race for Bitcoin - https://www.nytimes.com/2023/04/09/business/bitcoin-mining-e... ( Published April 9, 2023; Updated Jan. 3, 2024 ). It's a well done presentation.
And they are shocked that this is driving up electrical prices. https://x.com/LtGovTX/status/1800968003636408657 (June 12th, 2024)
> ERCOT CEO Pablo Vegas and others gave shocking testimony today in the Senate Committee on Business & Commerce that within only six years (that’s only three legislative sessions), our power grid needs will grow from about 85,000 to 150,000 megawatts. That is much higher than the 110,000 megawatts they previously projected. The 110,000 megawatts was already a big increase, which is why the Senate pushed our incentive plan to build more dispatchable power last session. 150,000 megawatts is almost double the megawatts we now have on the grid.
> Later testimony said the growth is due to the increases in population, normal business growth, and Artificial Intelligence (AI). However, crypto miners and data centers will be responsible for over 50% of the added growth. We need to take a close look at those two industries. They produce very few jobs compared to the incredible demands they place on our grid. Crypto mining may actually make more money selling electricity back to the grid than from their crypto mining operations.
> Texans will ultimately pay the price. I’m more interested in building the grid to service customers in their homes, apartments, and normal businesses and keeping costs as low as possible for them instead of for very niche industries that have massive power demands and produce few jobs. We want data centers, but it can’t be the Wild Wild West of data centers and crypto miners crashing our grid and turning the lights off.
> The Senators asked why this had not been disclosed before today. #txlege
---
The theory is/was that Texas grid works "best" (the market runs most efficiently) when its running at the most capacity (everyone with something that can generate power is making money - this is better than conserving and asking polluting or less efficent sources to spin down when the demand isn't there ... in theory) with the ability to have things that can't pay for the increased price (in theory, that was supposed to be crypto) scale back their use when other demand goes up.