energy consumption

Australian Companies Signed Deal to Develop Blockchain-Driven Virtual Power Plants

Power Ledger, a Perth-based energy trading software company, and Powerclub, an Australian electricity wholesaler, have signed a deal to offer households unparalleled authority over their energy usage via blockchain.

Power ledger is famed for its blockchain-enabled peer-to-peer framework that prompts energy trading between households. The commercial partnership, therefore, seeks to enable Powerclub users to pool their net battery and solar storage as this will serve as a virtual power plant (VPP). This will make them attain considerable access to wholesale electricity prices prompting more control over what they pay per their energy consumption.

The blockchain-enabled VPP technology availed by Power Ledger will permit Powerclub households possessing batteries to pool their stored solar power and sell it whenever price spikes and high energy demands are witnessed.

The Australian Urge for Energy Trading Platforms

The Energy Market Commission in Australia has already spelled out the urge for future grids to act as energy trading platforms.

Jemma Green, the chairman, and co-founder of Power Ledger stipulated: “The Australian Energy Market Commission has already flagged the need for grids of the future to become energy trading platforms. The future of the energy industry will be decentralized and democratized, like what we’ve seen happen to the taxi industry with rideshare apps like Uber and Ola. You no longer need to be a massive electricity company to commoditize energy,”

Under the present system, energy consumers do not get value for money as the electricity retailer usually subjects them to additional hidden costs and mark-ups to cater for supply costs. This approach makes high energy prices inevitable in Australia.

Powerclub’s CEO, Stuart McPherson, stipulated: “If there’s one thing that Powerclub stands by, it’s transparency. We’ve partnered with Power Ledger as we see their technology as being critical in reducing price opacity in the energy market.”

The blockchain-driven virtual power plant, therefore, seeks to offer households transparency about their energy consumption, as well as empower them economically.

Image via Shutterstock

Elon Musk’s Concerns Over Bitcoin's Energy Consumption Are Misguided, Says Ark Invest

Yassine Elmandjra, an analyst at Ark Investment Management company, said that Elon Musk’s concerns about Bitcoin’s energy usage were “misguided.”

Last week, Elon Musk, the founder and CEO of Tesla Inc., caused an uproar in the crypto space over his concern that Bitcoin mainly relies on fossil fuels for its energy needs. He further said that Tesla will no longer accept Bitcoin as a payment method. His comments cast doubt about his bullishness on crypto.

However, in his analysis note, Elmandjra stated that he believes Bitcoin will actually lead a greater share of the grid powered by renewables and therefore will become a “net positive for the environment,” and accelerate a green-energy revolution.

Bitcoin mining “could impact the amount of renewable energy provisioned to the grid by transforming intermittent power resources into baseload generation by way of energy storage… renewables would be able to satisfy only 40% of the grid’s needs in the absence of Bitcoin mining but 99% with the commercial ‘subsidies’ associated with Bitcoin mining,” Elmandjra wrote.

Elmandjra revealed that Musk’s decision to stop accepting Bitcoin as a method of payment seems to have been triggered by Greenidge’s plans to revive a coal power plant to mine Bitcoin. Musk referenced Greenidge’s announcement in a tweet.

Elmandjra further disclosed that as a result, Greenidge made a clarification that not only is its plant powered by natural gas and feeds the grid, but it also purchases carbon credits to offset the emissions.

Elmandjra’s analysis supports a whitepaper published by Square and ARK Invest last month that suggested that renewable energy adoption would rise due to Bitcoin mining.

Musk gave Elmandjra’s analysis a nod of approval by replying “True.”

Carbon Offsetting Taking Shape

On May 11, Elon Musk announced that Tesla halted purchases of its motor vehicles with Bitcoin because of concerns over “rapidly increasing use of fossil fuels for Bitcoin mining.”

Since then, Bitcoin price has dropped to a new low of $42,000, but the crypto bounced briefly after Musk clarified that Tesla had not sold its $1.5 billion worth of Bitcoins it purchased in January.

A few days ago, Greenidge Generation Bitcoin mining company announced that beginning June 1, the company would be “carbon neutral” for the rest of 2021 and beyond. The company’s announcement followed the recent statements from Tesla after the motor vehicle firm cited environmental concerns over Bitcoin mining.

Greenidge New-York based Bitcoin mining firm has joined what seems to be an increasing number of other cryptocurrency firms seeking to minimize their carbon footprint through carbon offsetting – funding ways to reabsorb excess CO2 from the atmosphere or reducing emissions.

In December 2020, Square Inc., announced plans to launch a clean energy investment initiative to help make the Bitcoin supply chain greener. The San Francisco-based company announced the launch of its Bitcoin clean energy investment initiative, where it committed $10 million to support firms that help drive efficiency and adoption of renewables within the Bitcoin ecosystem.

Did Elon Musk Inadvertently Promote Ripple (XRP) When He Dropped The Bitcoin Bomb?

Ever since Tesla CEO Elon Musk announced that the automaking company will be dropping Bitcoin payments, Bitcoin (BTC) has plunged dramatically on the crypto market, shedding more than $10,000 of its value. Currently, the cryptocurrency is trading at $43,307.17, down 10% in the last 24 hours.

Last week, Musk announced via Twitter that Tesla was no longer going to enable Bitcoin payments, as BTC was not environmentally friendly enough for Tesla. He hinted that the company was however not done with the cryptocurrency altogether, as it will undoubtedly reimplement Bitcoin transactions once more sustainable energy was used to mine the cryptocurrency. The tweet shared by Musk read:

“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”

Musk indicated that Bitcoin’s energy usage over the last few months has been “insane” to say the least, and further hinted that Tesla may be contemplating Dogecoin (Doge) payments, as it was revealed that Tesla and Doge’s developers were collaborating to try to “improve system transaction efficiency.”

Bitcoin, although touted as the digital gold and the best asset to hold in the crypto market, has not been known to be environmentally friendly. In fact, previous research has revealed that the amount of electricity required to mine Bitcoin daily is equivalent to the electricity needed to power an entire country, namely Ireland. Bitcoin’s energy consumption even exceeds the amount of electricity used in certain countries, like Malaysia and Sweden.

XRP is touted as the green cryptocurrency

If Tesla was exploring more environmentally-friendly cryptocurrencies as Musk suggested, its search may lead it to Ripple (XRP). XRP has been touted as “the green cryptocurrency.” According to Ripple’s Chief Technology Officer David Schwartz, Bitcoin is 57,000 times less eco-friendly than XRP. One of XRP’s driving points is that it was designed with sustainability in mind.

Previously, a Ripple blog post compared the energy consumption between 1 million XRP transactions and 1 million Bitcoin transactions. Ripple researchers found that while 1 million XRP transactions could power 79,000 lightbulb hours, 1 million Bitcoin transactions could power a total of 4.51 billion lightbulb hours.

Musk’s Bitcoin tweet triggers a reaction

Although Musk’s tweet about Bitcoin’s energy consumption has not directly redirected users towards XRP, it has certainly served to spark a conversation about Bitcoin and cryptocurrencies’ ecological footprint. Following his comments, Greenidge, the world’s first fully compliant powerplant-cryptocurrency mining hybrid, came forward and announced its intention to offset all greenhouse gas emissions from its Bitcoin mining facility.

Apart from offsetting 100% of its carbon emissions from its Bitcoin mining operations, Greenidge also intends to invest a portion of its mining profits in renewable energy projects. The firm is actively considering direct financing of alternative green energy sources located in New York and in other regions across the country.

Michael Saylor Defends BTC Mining Council Embraces Decentralization

Michael Saylor, Bitcoin bull and MicroStrategy CEO, defended Tuesday the newly established Bitcoin mining council against criticisms that it runs to counter the decentralized nature of Bitcoin.

The news regarding the establishment of the Bitcoin mining council recently caused uproar and encountered criticism. Crypto critics were quick to point out that the formation of such a central governing body contravenes the decentralized ethos of Bitcoin and thus consolidates power over the future of the Bitcoin ecosystem.

For example, Marty Bent, co-founder of Great American Mining company, aired his views concerning the mining council.

“This move has absolutely nothing to do with green energy or climate. It has everything to do with ‘CONTROL’.” Bent wrote in his newsletter shortly after the announcement.

However, Saylor refuted to critics, saying that the formation of the Bitcoin mining council aims to ensure the success of a decentralized cryptocurrency, and the source of decentralization is energy consumption.

Saylor said that concerns over the sustainability of energy sourcing had become an existential threat to Bitcoin (BTC). He, therefore, stated that the council wants to defend BTC and manage any concerns, especially from uninformed parties and ensure that people who are hostile to Bitcoin and the crypto industry are not defining baseless narratives, models, and metrics.

Saylor described the council as an organization whose aim is to standardize energy reporting education, grow the marketplace, and pursue industry ESG goals. He stated that the council’s first task is to create a protocol that would standardize energy reporting requirements for the miners and act as a benchmark versus other industries, giving institutional investors comfort as they enter the crypto space. He further revealed that the group intends to create industry-wide Environmental, Social, and Corporate Governance (ESG) goals.

Saylor explained that ESG is an investing strategy focused on environmental, social, and governance concerns to promote sustainability in the corporate space.

Decarbonizing Bitcoin

On Monday, May 24, Elon Musk and Michael Saylor announced that they hosted a call meeting event with executives of major crypto mining firms in North America, including Marathon Digital Holdings, Galaxy Digital, Argo Blockchain, and others and resolved to promote energy sustainability within the crypto mining space.

The meeting led to the formation of the Bitcoin mining council to accelerate sustainability initiatives, promote transparency of energy consumption worldwide, and encourage miners to use renewable sources.

The council was formed two weeks after Elon Musk suspended that Tesla halted Bitcoin payments for its motor vehicles sales and services, citing the increasing use of fossil fuels for Bitcoin mining and transactions. In addition, the establishment of the mining council comes a week after Chinese authorities imposed a crackdown on crypto mining and trading activities. China is estimated to account for over 75% of the entire processing power on the Bitcoin network.

Microsoft Ventures into Nuclear Energy to Power AI Development

To further its efforts in the field of artificial intelligence (AI), software giant Microsoft is venturing into the potentially dangerous world of nuclear power. The IT giant has signalled a strategic effort to establish an energy strategy based on Small Modular Reactors (SMRs) and microreactors by posting a job opening for a Principal Programme Manager in Nuclear Technology. This decision was made public by the posting of the job offering. This initiative’s goal is to provide support for the company’s cloud and artificial intelligence systems, which are growing more energy-intensive.

The duties of the position as well as the required credentials are outlined in the posting for the job, which is no longer accepting applications. It is anticipated that the ideal applicant will have at least six years of experience working in the engineering field, the energy market, or the nuclear business. According to the job description, the primary responsibilities of this post will include “maturing and implementing a global Small Modular Reactor (SMR) and microreactor energy strategy.” Additionally, the function requires investigating a variety of alternative experimental energy methods.

Data centres and artificial intelligence models have a well-deserved reputation for their excessive energy usage. According to the findings of a research that was published in 2019 in the MIT Technology Review, the training of a single AI model might produce as much carbon dioxide as five automobiles over the course of their lifespan. Microsoft plans to address this problem by improving both its software and hardware algorithmic and hardware efficiency, as well as by maximising the use of renewable energy sources such as nuclear power. According to the United States Office of Nuclear Energy, nuclear power is the only kind of energy that does not emit any carbon emissions; hence, it is an attractive choice for Microsoft’s environmental projects.

The change, on the other hand, is not without its difficulties and its detractors. Nuclear energy, according to the findings of researchers at Stanford University, is not a silver bullet for resolving environmental problems because of its protracted planning-to-operation time, enormous carbon footprint, and meltdown hazards. In addition, there are issues over the management of radioactive waste and the establishment of a uranium supply chain, particularly in light of the fact that Russia has been the primary supplier of highly enriched uranium fuel (HALEU) to the rest of the world.

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US Authorities Uncover Chinese-linked Bitcoin Mining Operations

The discovery of numerous Bitcoin mining operations with ties to China on American soil has flagged serious national security concerns among US authorities. A comprehensive report published by The New York Times on October 13 unveils a substantial presence of Bitcoin data centres in the US, traceable back to the Chinese government. The proximity of some of these operations to critical military and infrastructure sites further exacerbates the apprehensions. A notable case is a mining operation in Wyoming, situated adjacent to a Microsoft data center, pivotal in supporting various Department of Defence initiatives.

Geopolitical Undercurrents

The exploration sheds light on the potential risks emerging from growing Chinese-linked mining operations amidst the escalating political discord between the United States and China. The latter’s decision to outlaw mining activities in 2021 propelled many mining entities to migrate to crypto-receptive US states like Texas and Wyoming. The broader geopolitical implications are palpable as these revelations come at a time of heightened tension between the two superpowers, with the US continually scrutinizing cryptocurrency usage by individuals and corporations affiliated with China. Moreover, six Congress members called for a thorough investigation in July, following allegations of the cryptocurrency startup Prometheum having connections to the Chinese government.

Power Grid and Infrastructure Stress

The infrastructural stress induced by these mining operations is significant. The collective energy consumption of Chinese-owned or operated Bitcoin mining facilities across at least twelve states equates to that of 1.5 million households, posing a considerable demand on the US power grid. These mining facilities, harboring specialized computers operating ceaselessly, have the potential for targeted blackouts and cyberattacks due to their substantial energy usage and the instantaneous capability to escalate or cease operations, presenting a unique challenge among large power users.

Ownership and Equipment Supply

A commonality among these mining operations is the utilization of computing equipment produced by Bitmain, a Chinese enterprise. Following China’s ban on Bitcoin mining in May 2021, there has been a noticeable uptick in equipment shipments from Bitmain to the US. The ownership structures of these mining ventures range from transparent investments by affluent Chinese nationals seeking revenue channels outside China’s jurisdiction, to more murky setups with several traceable back to the Chinese government.

The revelation of Chinese-linked Bitcoin mining operations dispersed across the US, intertwined with substantial energy consumption and potential national security threats, has garnered the attention of both US government officials and corporations. The unfolding scenario evokes pressing inquiries concerning cybersecurity, energy sustainability, and the ongoing geopolitical strain between the US and China.

Sam Altman Advocates for Energy Breakthroughs in AI at Davos Forum

At the recent World Economic Forum held in Davos, Switzerland, a significant focus was placed on the future of artificial intelligence (AI), especially concerning its energy consumption. OpenAI CEO Sam Altman highlighted the pressing need for an energy breakthrough to sustain the development and operation of advanced AI models like ChatGPT and Anthropic’s Claude. Altman’s call to action reflects a growing concern in the tech industry about the environmental footprint of AI technologies.

The Energy Intensity of AI

The power requirements for AI, particularly for large language models (LLMs), are immense. Altman pointed out that the current methods for developing such AI models involve using tens of thousands of graphical processing units (GPUs), leading to incredibly high power requirements both during the training cycles and post-training. The situation is such that the energy consumption of AI models could soon equate to the power usage of an entire country.

The Fusion Solution

In response to these challenges, Altman is advocating for investment in nuclear fusion as a potential solution. Fusion energy, which involves fusing atoms together to release energy, is seen as a zero-carbon solution that could upscale power grids to meet the demands of AI technologies. Altman has already invested significantly in this area, contributing $375 million to Helion Energy, a fusion startup, in 2021. Helion has since signed a deal to provide energy to Microsoft, which is not only OpenAI’s biggest financial backer but also provides computing resources for AI development.

A Global Perspective

During his speech at a Bloomberg event alongside the WEF meeting, Altman stressed the need for more climate-friendly energy sources, including cheaper solar power and storage, alongside fusion. He also expressed a desire for the world to embrace nuclear fission as an energy source. This stance underlines the importance of exploring multiple avenues to address the energy needs of future AI models.

The Urgency of Action

The call for an energy breakthrough is not just about enabling the next generation of AI technologies; it’s also about addressing the environmental impact of these advancements. The AI industry’s carbon footprint is becoming increasingly apparent, raising concerns about the sustainability of current practices. As AI becomes more integrated into various sectors, its energy consumption is set to increase dramatically, necessitating immediate action and innovation in energy production and storage.

Conclusion

Sam Altman’s statements at the Davos Forum bring to light the critical intersection of AI development and environmental sustainability. As AI technologies advance, the industry must simultaneously address the escalating energy demands and environmental impacts. The pursuit of solutions like fusion energy not only promises to sustain the growth of AI but also contributes to the broader goal of achieving a more sustainable and environmentally friendly future.