The rapid growth of renewable energy sources, particularly photovoltaics, both in Greece and in other European countries, has led to unprecedented levels of “green” energy supply, which often cannot be absorbed at the moment it is generated. As a result, the operation of photovoltaic installations is curtailed, especially during the most productive hours of the day. Battery storage may ease the problem somewhat, but it will not solve it, since in many countries oversupply has now become a balancing problem: more green energy is being generated than can be absorbed, with or without storage.
The only development that could offer a permanent and meaningful solution to the problem would be to increase demand—in other words, for all of us, businesses and individuals alike, to decide to consume more electricity so that none is left over. But this does not appear to be a likely prospect on the horizon. The peculiarities of the Energy Exchange keep prices consistently high, at prohibitive levels that discourage rather than encourage the use of electricity. Energy-intensive industry seems to be declining rather than growing, while private consumption is also falling—or at any rate is not increasing—as a result of various energy-saving programs. The prospects for exports are also “dim,” given our neighbors’ energy profiles and the relationship between prices in energy markets.
So, with a short-sighted, superficial view, we switch off the solar parks and call it a day. Our hand hurts, so we cut it off! Then we start arguing and complaining: who will be curtailed the most, who will be first and who second, whether there will be compensation and who will pay for it, who is to blame for this and who for that.
The solution to curtailments
Of course, the government bears enormous responsibility for this situation. Our country, usually late to the basics, is unjustifiably leading the way in many unprecedented initiatives, one of which is the Green Transition, with targets that we are already ahead of by 10 years! Producers are experiencing the consequences through curtailments, and consumers through astronomical electricity bills. And while halting the licensing of new photovoltaic parks is an obvious choice, as is scaling up curtailments based on the age of the parks, no one is talking about the only genuine way out of the problem: consuming the energy instead of throwing it away. Burn the electricity rather than switch it off. Yes, but where?
An excellent solution is cryptocurrency mining, especially Bitcoin, which uses Proof of Work. Put simply, this means that Bitcoin is produced by burning electricity. The amount is astonishing. At today’s price of $ 120.000, the energy produced by 1 MW of photovoltaics over a year is not even enough to produce a single Bitcoin! It does not matter all that much exactly what cryptocurrencies are or how they work. There are many opinions, from both experts and non-experts. More important than opinions is reality, and reality says that by using the electricity your park produces, you can create something that has a price and can be converted directly into euros and generate income. We often hear hysterical claims that cryptocurrencies are tools of terrorists, criminals, and tax evaders. The central banks of almost every country have issued circulars against cryptocurrencies, just as the church once did against heretics.
My own view is that Bitcoin is digital gold. Humanity has lived through golden ages supported by gold and silver, conducting transactions with coins made from these rare metals, whose integrity was safeguarded by figures of historic stature. Few people know who was Master of the Mint—that is, head of the British Empire’s mint—for 28 years: Isaac Newton himself. In person! The professor at Cambridge, author of “Mathematical Principles of Natural Philosophy,” the founder of modern science who formed the intellectual bridge between Aristotle and Einstein, is the very same person entrusted with safeguarding the integrity of the currency, as the foundation of social cohesion and as a prerequisite for the very existence of any state. For centuries, economies relied on the anti-inflationary foundations laid during his time.
The reason transactions in hard currencies began to be debased and were eventually abandoned in favor of unbacked inflationary currencies issued by central banks was none other than the rapid advance of telecommunications. In other words, a transaction could be agreed instantly using modern means of communication, while clearing—the settlement of the currencies—took weeks.
Bitcoin solves this problem by being both a medium of exchange (money) and a means of saving (currency). The simultaneous execution of a transaction and its settlement on the Blockchain eliminates the reason for the existence of state-issued inflationary currencies (dollars, euros, yen, etc.) and brings the adoption of Bitcoin as the official global currency to the fore. and consequently the loss of monetary policy by states, since this will undoubtedly be determined by the open-source code that “runs” the Blockchain.
My view, is that Bitcoin will soon be adopted as an official currency. Its exchange rate against government-issued currencies (that is, its price in $, €, etc.) can only trend strongly upward over the long term, given its own deflationary nature compared with their inflationary nature. Just as with gold, in other words, but without the difficulties of settling transactions.
Why it makes economic sense
Whether or not this view comes to pass—which is, of course, increasingly likely, as more and more countries and U.S. states adopt Bitcoin as a reserve currency—the truth remains that you can mine it at your solar park, using the electricity you generate instead of switching off the breakers to the glory of government short-sightedness.
Based on my personal experience and professional expertise in this area, I seriously recommend Bitcoin mining as a solution to the problem of energy overproduction. Mining units can be installed at any park to absorb all the curtailed energy, switching on automatically when curtailment is applied. The mining system is autonomous and is not connected to, or dependent on, the grid.
The current return is higher than the DAPEEP contracts (already approximately € 73 / MWh) and comes without the threat of curtailments, offering a meaningful alternative to anyone who wants to reduce or even eliminate their park’s grid-connected capacity. Economies of scale will increase this return even further.
Independent producers can easily try it out with the surplus portion of older parks (of 2010-2014) that results from repowering with new panels. A mining installation is also an ideal fit for standalone photovoltaic generation facilities, in irrigation systems, product processing, etc., as it can easily and profitably absorb surplus energy.
The autonomous Bitcoin mining systems that we already professionally build and recommend, should also be implemented by DEDDIE/ADMIE themselves at grid level. Instead of switching off the breakers at producers’ parks, they could switch them on at strategically located Bitcoin mining facilities across the grid, stabilizing the grid, ensuring producers are not affected, and creating a national strategic reserve in the currency of the future. Bitcoin, is the future, and it is also the solution. It is the technological advancement that turns a problem into an opportunity. All it takes is an open mind.
Source: EnergyPress
Source: EnergyPress
