I read some article once that talked about Washington having cheap hydro-electric power and commercial real estate lots having a shitload of available power for Bitcoin mining.
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1/3 of Texas is without power right now...
- Thread starter casa_mugrienta
- Start date
Washington does have cheap power (Texas is around the same)...but it's the tariff structure that makes crypto mining economically difficult.
When you buy power from your local utility you are put on a rate commensurate with your consumption. Bitcoin would go on either a commercial or industrial tariff depending on demand. The utility then measured incremental data, usually every 15 minutes but some utilities use every 30 minutes. They take the highest demand point over a tariff designated incremental period (could be 24 hours, could be 30 days) and charge you demand charges based on that point. So if for 1 second of one hour your demand spikes to 500KW and the demand charges on your tariff are 30 bucks you will pay the utility 15,000 per month every month for the year weather or not you ever hit the peak again. Their reasoning behind this is they need to have that power available to you whether you use it or not because you've hit it in the past....so you're paying for that availability.
With the advent of alternative energy sources, solar, CHP, energy storage, self generation etc utilities are getting punitive with their demand charges and putting in ratchets so that even if your demand is way down that can slowly lower your demand rather than meet the actual.
So you plug your mining equipment in and it runs steady at 400KW, you had a peak on start up to 650KW.... you're going to pay your KW/h consumption plus the demand charges based on 650KW which using 30 bucks as the demand charges you're looking at about another 20K in monthly charges on top of consumption and this doesn't even include transmission, delivery and taxes.
Go to a small producer in Texas who has more gas than they know what to do with and you'll get the production rate of 1.5 per million which will equal the utility rate in consumption charges but you won't have the demand charges to deal with.
So you plug your mining equipment in and it runs steady at 400KW, you had a peak on start up to 650KW.... you're going to pay your KW/h consumption plus the demand charges based on 650KW which using 30 bucks as the demand charges you're looking at about another 20K in monthly charges on top of consumption and this doesn't even include transmission, delivery and taxes.
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In bitcoin mining the blade servers run 24/7, the a/c runs 24/7..everything runs 24/7 so staged initial startup and it's a steady draw. And if start-up was an issue,
a bank of capacitors in front of demand will buffer any spike to peak KVA.
Speaking of spikes, large utility companies run their billing through algorithms that will identify sudden increases in historical address usage...how they bust fresh indoor pot grows as well as residential bitcoin startups.
[/QUOTE]
In bitcoin mining the blade servers run 24/7, the a/c runs 24/7..everything runs 24/7 so staged initial startup and it's a steady draw. And if start-up was an issue,
a bank of capacitors in front of demand will buffer any spike to peak KVA.
Speaking of spikes, large utility companies run their billing through algorithms that will identify sudden increases in historical address usage...how they bust fresh indoor pot grows as well as residential bitcoin startups.
LOL! I was well insulated. I drove my ass to work and sold six rides that week. All good this year.
