By The PUCT has introduced new regulations governing crypto mining operations in Texas.
The Public Utility Commission of Texas (PUCT) has introduced new requirements for cryptocurrency mining operations within the Electric Reliability Council of Texas (ERCOT) region. These facilities must register with state authorities and provide annual updates on vital operational details.
In accordance with the recently adopted regulation, facilities engaged in virtual currency mining—defined as those utilising electronic systems to process virtual currency transactions on a distributed ledger and consuming in excess of 75 MW of power with at least 10 percent interruptible load—are required to disclose their location, ownership structure, energy consumption, and business model on an annual basis.
In accordance with the new regulations, crypto mining facilities are required to register with PUCT by February 2025. Failure to comply will result in fines of up to $25,000 per day.
The PUCT’s decision to implement the new rule is a direct result of the increasing energy demand of cryptocurrency mining facilities on the Texas grid.
“To guarantee the reliability of the ERCOT grid and meet the electricity needs of all Texans, it is essential for the PUCT and ERCOT to be aware of the location and power requirements of virtual currency miners,” stated PUCT Chairman Thomas Gleeson.
The Texas grid has been subjected to considerable strain due to the proliferation of facilities designated as large flexible load (LFL) customers.
The growth of LFLs presents a risk of unpredictable fluctuations in energy use, with potential for rapid shifts in power consumption.
The US Energy Information Administration (EIA) has forecast that by the end of 2025, ERCOT will have approved operations of 9,500 MW of LFL demand capacity, representing a 73% increase over current approvals.
If the projections are accurate, LFL consumers will represent 10% of overall consumption, which could have significant implications for the grid.
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