The US government has conducted a survey of the impact of crypto mining on electricity use

The United States Department of Energy (DOE) has launched a mandatory data collection drive to develop a “baseline snapshot” of the country’s cryptocurrency mining industry’s energy consumption.

As Cointelegraph previously reported, the DOE's Energy Information Administration (EIA) will conduct an interim study to measure the electricity use of local mining companies. The DOE statistical agency received an “emergency request” authorization to collect data through January 2024.

Cointelegraph contacted the EIA to confirm better details of the data collection drive and its rationale. EAIA media relations representative Morgan Butterfield cited a memo from agency administrator Joe DeCarolis requesting emergency authorization that expressed the organization's belief that Bitcoin's (BTC) resurgence is driving increased mining activity in the United States:

“As evidence, the price of Bitcoin has increased approximately 50% in the past three months, and higher prices encourage more cryptomining activity, which in turn increases electricity consumption.”

DeCarolis added that the approval of the emergency authorization for the forced survey comes as the US is “in the midst of a severe cold snap that has resulted in high demand for electricity.” The AI ​​administrator argues that the effects of rising cryptocurrency mining and a congested electricity system will increase demand, which will “affect system operations and consumer prices”.

Preparing the home screen of American cryptocurrency mining

Butterfield said the EIA wants to collect data to develop “a baseline snapshot of the crypto mining companies in the sample.”

This includes measuring the rate of change between mining firms, US secret miners identifying electricity sources and identifying regions of concentrated mining activity.

The EIA confirmed that all commercial cryptocurrency miners in the U.S. engaged in cryptocurrency mining using the proof-of-concept (PoW) consensus mechanism are required to participate in the survey.

Related: Texas is home to nearly 30% of all Bitcoin hash rate – Foundry

DOE's Office of Management and Budget (OMB) approval of the emergency request allows EIA to collect data on a monthly basis through the end of July 2024. The study takes into account self-generated energy by cryptocurrency mining companies, which occurs in facilities that have no output. On the US power grid.

Butterfield also confirmed that the EIA should publish a notice calling for public comments and comments on the study of cryptocurrency mining facilities in February.

EIA's Best US Crypto Mining Electricity Use Estimate

After announcing the mandatory survey, EA published a technical analysis report on cryptocurrency mining and top-down and bottom-up energy consumption estimates for the domestic mining industry.

The EIA considers the widely cited Cambridge Bitcoin Electricity Consumption Index (CBECI) a top-down approach to estimating Bitcoin mining metrics in the United States. According to CBECI's most recent data, the global share of Bitcoin mining in the US rose from 3.4% in January 2020 to 37.8% in January 2022.

Assuming that the share of global activity in the US remains at that level, the EIA estimates that electricity consumption from Bitcoin mining in the United States will range from 25 terawatt hours to 91 TWh. This estimate is It represents 0.6% to 2.3% of the national electricity demand in 2023, which was 3,900 TWh.

Related: Cambridge Bitcoin Electricity Consumption Index Updated to Increase Hardware Distribution and Hash Speed

EIA has made its own bottom-up approach to estimate the use of cryptocurrency mining power in the United States. The agency identified 137 U.S.-based facilities and collected space and capacity data for 52 specific operations in 21 states. Most of these sites are in Texas, Georgia and New York.

The EIA compiled specifications for each facility and estimated the maximum power capacity needed to operate the mine in megawatts (MW). Several utilities are associated with the power plants listed in the administration's EIA-860 Annual Electric Generator Report.

EIA estimates the maximum electrical capacity for these plants to be 10,275 megawatts. The report estimates that mining facilities are mostly operating below their maximum capacity and the peak electricity consumption is estimated to be around 70 TWh.

The crypto community is skeptical of government surveillance.

The emergency order that approved the EAAA survey in the US has raised doubts in some parts of the country's mining and bitcoin community. Some individuals have taken to X to share concerns about DOE's data collection efforts.

TBC is deeply concerned about the sudden attack on EIA's (Energy Information Administration) groundless emergency mandate requiring Bitcoin mining companies to report energy consumption. This discrimination against certain consumers seems to be moving forward…

— Lee Bratcher (@lee_bratcher) February 1, 2024

Lee Bratcher, president of the Texas Blockchain Council, said the body was “deeply concerned” by what it described as an “exciting attack” by the EIA.

This discriminatory action against certain consumers seems to advance political interests rather than facts and sound policy.

Pierre Rochard, vice president of research at Bitcoin mining infrastructure firm Riot Platform, argued that Bitcoin mining plays an active role in stabilizing energy networks and that there is no emergency to collect data.

The science is clear, experts agree that #bitcoin will stabilize the grid thanks to demand response.

There is no “emergency” to collect data. pic.twitter.com/tL4d2Uhsop

— Pierre Rochard (@BitcoinPierre) January 31, 2024

Marty Bent, director of Bitcoin mining company Cathedra, suggested that US authorities are looking to “create a highly detailed registry of miners”.

Currently diving into the EIA's ruling against bitcoin mining operations in the US. It is extremely Orwellian.

It looks like they are trying to create a high spec mining rig in the US, right down to the special ASICs. pic.twitter.com/tfZRhjugHe

— Marty Bent (@MartyBent) February 1, 2024

The EEA's analysis report acknowledges that cryptocurrency mining operations are working for large electricity users in conjunction with grid operator incentives to reduce usage during periods of peak demand:

“Cryptocurrency miners have become regular participants in these programs, known as demand response, resulting in operations being temporarily halted or shut down.”

Related: Riot Platforms Says Texas Energy Strategy Cuts Production Costs by $31M

The EIA points to the Texas grid operator's Large Flexible Load (LFL) program, which has helped 1,530 MW of large industrial consumers reduce their usage during periods of peak demand.

Cryptocurrency miners are mentioned as the main participants in the program.

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