Bitcoin Mining: A Catalyst for Grid Stability and Reduced Costs, Says Researcher

Recent research by independent analyst Daniel Batten reveals that Bitcoin mining can actually enhance electrical grid stability and lower electricity costs for consumers. This analysis counters widespread misconceptions about the environmental and energy impact of Bitcoin mining, challenging the belief that it burdens power systems.

Key Takeaways

Bitcoin mining helps stabilize electrical grids and can reduce consumer electricity costs.
Independent studies show that mining operations provide flexible demand to balance grids, especially with renewable energy sources.
Contrary to popular belief, Bitcoin mining does not cause an increase in household electricity expenses.
Research indicates significant benefits for both grid stability and consumer pricing due to Bitcoin mining.

Bitcoin Mining Actually Stabilizes Grids and Lowers Costs, Researcher Says

Bitcoin Mining and Grid Stabilization

Bitcoin mining operations are proving to be beneficial for electrical grids rather than detrimental as previously thought. Research conducted by Daniel Batten highlights the role of Bitcoin mining in enhancing grid stability and bringing down electricity costs for consumers through demand flexibility and other grid services.

This study, titled “Common Bitcoin Energy Misconceptions,” breaks down important misconceptions regarding the energy consumption and environmental impact of Bitcoin mining.

Batten cites peer-reviewed studies and real-world grid data that dispel the narrative of Bitcoin mining harming power systems and increasing consumer electricity costs.

How Bitcoin Mining Balances Grids

Multiple studies endorse the idea that Bitcoin mining can help balance electrical grids due to its ability to interrupt operations. This is particularly crucial for networks integrating more variable renewable energy sources, such as solar and wind.

A whitepaper from Duke University highlights how Controllable Load Resources, including Bitcoin mining facilities, can stabilize grids and delay expensive infrastructure upgrades. Additionally, data from ERCOT, Texas's grid that hosts a major concentration of Bitcoin mining, shows mainly stabilizing effects stemming from frequent Frequency Regulation and Demand Response services.

Former ERCOT interim CEO Brad Jones summed it up well: “[Bitcoin mining operations] have found a way to come into the market and take some of that excess wind during off-peak periods. They can turn down whenever other customers need power... If a generator fails, they respond quickly to the frequency disruption and allow us to balance our grid more efficiently.”

In fact, Texas witnessed a single mild destabilization incident involving Bitcoin mining on April 25, 2024, alongside numerous large-scale stabilization instances over a multi-year span, including critical emergency support during the July 2022 heatwave.

Lowering Consumer Costs

Contrary to claims suggesting Bitcoin miners hike residential electricity prices, Batten’s data from Texas between 2021 and 2024 indicates that total electricity costs for residential customers increased by just 23.8% (or 7.0% when adjusted for inflation). This is notably lower than the national average increase of 24.67%.

Batten outlines five ways in which Bitcoin mining contributes to lower consumer electricity costs:

Monetizing renewable energy that might otherwise go to waste
Fostering competitive markets for Ancillary Services
Reducing the necessity for additional gas peaker plants
Lowering curtailment fees
Deferring expenses related to grid infrastructure

Jones added, “The ability of [Bitcoin Mining] to meet our ancillary needs at the lowest possible cost translates to lower costs for all consumers in Texas.”

After the Texas blackouts of 2021, ERCOT initially considered investing $18 billion in the construction of gas peaker plants but instead opted to incorporate Bitcoin miners as a flexible load that could reduce consumption quickly during times of grid stress.

Two international case studies illustrate direct impacts on pricing. Residents in Norway experienced a 20% spike in electricity prices in September 2024 after Bitcoin mining operations left the area.

Bitcoin Mining Research - CNBC Report Screenshot

Meanwhile, CNBC reported that integrating Bitcoin mining into a rural microgrid in Kenya slashed electricity costs from 35 cents per kilowatt-hour to 25 cents by maximizing previously wasted hydroelectric energy.

Insights on Environmental Impact

Batten’s research also covers the claims regarding energy consumption per Bitcoin transaction. He notes that this metric has been discredited in four peer-reviewed studies (Masanet et al., 2019; Dittmar et al., 2019; Sedlmeir et al., 2020; and Sai and Vraken, 2023) and by Cambridge University, as Bitcoin’s resource use does not stem from its transactions.

Data from Cambridge in 2025 indicated that previous estimations exaggerated Bitcoin’s electronic waste by an astounding 1204%, revealing an actual annual e-waste of just 2.3 kilotons, not the claimed 30 kilotons.

Notably, Bitcoin mining has surpassed the 50% threshold for sustainable energy usage, outpacing the global average grid mix of around 40% renewable energy. Current estimates from Cambridge place Bitcoin mining emissions at 39.8 MtCO2e due to greenhouse gas emissions from scope-2 electricity usage, with 5.5% of annual carbon debt offset through methane mitigation from oil and gas.

Additionally, a recent report from Cryptonews highlighted a significant increase in Bitcoin mining difficulty, reaching 148.2 trillion. Projections suggest it could climb to 149 trillion by January 8, 2026, with average block times now averaging around 9.95 minutes. Meanwhile, Russian President Putin has recently suggested that the U.S. and Russia are in talks about jointly managing Ukraine’s Zaporizhzhia Nuclear Power Plant for Bitcoin mining endeavors.