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From Mining to Mitigation: How Bitcoin Can Support Renewable Energy Development and Climate Action
... Understanding the challenges and solutions related to employing renewable and carbon-free energy sources in large-scale mining operations is also important [28]. Integrating Bitcoin mining with intermittent solar and wind energy systems and electricity transmission grids [29] may expedite the expansion of renewable energy infrastructure and the initial and sustained investments needed for their grid interconnection [30]. ...
... Transmission requirements are a key development issue for renewables, and Bitcoin might allow renewable facilities to generate value without grid buildout. This alone is a key attribute of Bitcoin mining that might enable it to be a true partner for renewables that are located in remote locations, allowing them to produce energy and generate revenue prior to grid transmission connections becoming operational [30]. ...
In this study, we used a combination of AI-assisted analysis of social media discourse and collaboration with industry experts to delve into the key research needs associated with the Bitcoin mining industry. We identified primary threats, opportunities, and research questions related to the Bitcoin mining industry and its wider impacts, focusing on its energy use and environmental footprint. Our findings spotlight the industry’s move towards increasingly greater energy efficiency and an emerging commitment to renewable energy, highlighting its potential to contribute to the coming energy transition. We underscore the transformative potential of emerging applications in the Bitcoin mining sector, especially regarding demand response, grid flexibility, and methane mitigation. We suggest that targeted research on Bitcoin can serve policymakers, private sector decision-makers, research funding agencies, environmental scientists, and the Bitcoin industry itself. We propose that filling key information gaps could help clarify the risks and benefits of Bitcoin mining by encouraging collaboration among researchers, policymakers, and industry stakeholders and conducting research that provides baseline peer-reviewed evidence surrounding Bitcoin’s production and impacts. A collaborative approach could help mitigate the risks and realize the benefits of Bitcoin mining, including potentially positive and substantive contributions in alignment with the Sustainable Development Goals.
... Digital Business 5 (2025) 100114 (Rech, Yan, Bagonza, Pinter, & Musa, 2022). Several researchers have explored the potential of harnessing renewable energy sources, such as wind, solar and green hydrogen, to power BTC mining operations Lal, Zhu, & You, 2023) or balancing the grid (Bruno et al., 2023). These studies suggest that, by utilizing surplus renewable energy, BTC mining could reduce its environmental impact while also providing financial incentives for the development of renewable energy infrastructure (Velický, 2023). ...
... These studies have often employed the static grid assumption and used technical economic analysis (TEA) or life-cycle assessment (LCA) to depict how BTC mining promotes local off-grid RE access, leveraging the economic advantages of BTC mining to promote RE and reduce emissions. Lal [23]. Niaz et al. [24] considered using RE curtailment in the grid, finding that BTC mining could use RE curtailment for mining production in the Texas power grid. ...
Global climate challenges, coupled with the rapid expansion of digital industries, such as cryptocurrency mining, necessitate a comprehensive understanding of their environmental impacts. This study presents a novel dynamic regional model to assess carbon emissions from Bitcoin (BTC) mining within China's coal-heavy, interconnected power system. Our evaluation revealed that traditional average-emission-factor (AEF) methods significantly underestimated emissions by as much as 25% due to their failure to account for marginal emissions and grid complexities. Historical data from 2011 to 2021 reveal that cumulative carbon emissions reached approximately 103 megatonnes. In China, the 2021 regulatory ban on BTC mining, aimed at curbing these emissions, is projected to reduce them by an additional 25.5 megatonnes annually. However, the ban has resulted in nearly 20 TWh of renewable energy (RE) curtailment. Therefore, we propose to exploit the curtailed RE for green hydrogen production, which could yield about 0.4 mega-tonnes of hydrogen and confer about 8.2 megatonnes of low-carbon benefits annually. Our research underscores the effectiveness of policy interventions and highlights the potential for similar strategies in other globally interconnected grids. This work not only fills a critical gap by providing a scalable and accurate framework for environmental impact assessments but also explores the implications of digital technology regulations and offers insights into regional equity concerns within energy transitions. Moreover, the proposed model could be further extended to other regions, enhancing global strategies for regulating digital technologies and promoting sustainable energy use.
... Conversely, several studies highlight the potential of cryptocurrency mining to support renewable energy generation. For example, Carter et al. (2023), Ibañez and Freier (2023), KPMG (2023), World Economic Forum (2022), Lal et al. (2023), Lal et al. (2024), Bruno et al. (2023 and Velický (2023) discuss cryptocurrency mining as a flexible load response for renewable energy. The most important argument is that mining absorbs fluctuations of surplus energy, thereby improving the economic viability of renewable energy sources by monetizing otherwise wasted overcapacities. ...
The Bitcoin network imposes significant external costs on society, including high CO2-emissions and electronic waste, which rival those of entire nations. However, some studies argue that these externalities are justifiable, claiming that cryptocurrency mining
thrives sustainable energy production by monetizing surplus energy. We examine this trade-off from an economic standpoint, addressing three key questions: Does the use of surplus energy mitigate Bitcoin’s externalities? Are policy interventions such as carbon credits effective? And does cryptocurrency mining ultimately benefit or harm society? Our model shows that while surplus energy lowers the network’s CO2-emissions, it simultaneously incentivizes increased mining activity, leading to greater e-waste that may offset environmental gains. Moreover, we find that carbon credits,
when implemented multilaterally, can effectively reduce total externalities. We conclude with a discussion of the broader societal implications, emphasizing the dual role of Bitcoin mining in fostering the short-term transition but hindering the long-term transition to a sustainable energy system.
... It has catalyzed advancements in cryptography and energy efficiency, particularly in mining technology. Bitcoin mining using waste landfill gas can mitigate methane emissions (Rudd et al., 2024), enhance the economics of variable renewable energy generation (Bastian-Pinto et al., 2021;Lal et al., 2023;Niaz et al., 2022), expanding production capacity, and contribute to grid flexibility due to Bitcoin mining's unique demand-response characteristics (Carter et al., 2023;Fridgen et al., 2021). ...
... Contrary to current public opinion, Bitcoin has the potential to positively contribute and even accelerate the United Nations Sustainable Development Goals [1,[6][7][8]. This perspective article explores the intersection between biomass, biofuels, and biorefineries and how their potential relationship, specifically the integration of Bitcoin and other Bitcoinrelated activities, could aid IBs. ...
Despite advances in biofuel production and biomass processing technologies, biorefineries still experience commercialization issues. When costs exceed revenues, their long-term economic sustainability is threatened. Although integrated biorefineries have significant global potential due to process integration and product co-generation, it is crucial that they generate a positive net return, thereby incentivizing their continual operation. Nonetheless, research and development into new system designs and process integration are required to address current biorefinery inefficiencies. The integration of Bitcoin mining into biorefineries represents an innovative approach to diversify revenue streams and potentially offset costs, ensuring the economic viability and commercial success of biorefineries. When using bio-H2, a total of 3904 sats/kg fuel can be obtained as opposed to 537 sats/kg fuel when using syngas. Bitcoin, whether produced onsite or not, is an accretive asset that can offset the sales price of other produced biochemicals and biomaterials, thereby making biorefineries more competitive at offering their products. Collaborations with policy makers and industry stakeholders will be essential to address regulatory challenges and develop supportive frameworks for widespread implementation. Over time, the integration of Bitcoin mining in biorefineries could transform the financial dynamics of the bio-based products market, making them more affordable and accessible whilst pushing towards sustainable development and energy transition.
... Several studies have explored this synergy, highlighting the potential for Bitcoin mining to act as a flexible load that can balance intermittent renewable energy supply. For example, Lal et al. (2023) examined the potential for Bitcoin mining to integrate with solar and wind energy, concluding that such integration could enhance grid stability and provide a financial return on investment for renewable projects. Niaz et al. (2022) conducted a case study in Texas, where Bitcoin mining operations were co-located with wind and solar farms to mitigate curtailment issues, allowing for more efficient use of generated energy, reducing waste and improving overall economic feasibility. ...
This study presents the integrated design of emerging Redox Flow Batteries (RFB) within standalone Hybrid Renewable Systems (HRS). The key innovation is developing a multi-scale optimization framework for the optimal design of No-Mixing Vanadium RFBs. This framework incorporates a detailed electrochemical model, validated against experimental data, into an energy model for planning a Wind-Solar-Diesel-Battery system. The associated optimization model minimizes the capital cost of the energy system by employing a heuristic algorithm developed for rapid execution of the large mixed-integer nonlinear program, optimizing electricity storage through precise cell voltage modeling and consideration of electrolyte properties. The study evaluates the economic and environmental impacts of the optimized RFB design in real-world scenarios. Results indicate a 4.9 % reduction in capital cost and a 33.8 % decrease in CO2 emissions with the optimal integrated battery design compared to a normal high-efficiency battery design, demonstrating the potential of RFBs to compete with diesel generators in balancing renewable energy output. Additionally, the economic significance of the integrated battery design could lead to a 13.1 % cost reduction in a fully renewable system scenario. Further analysis explores the application of the optimized HRS for sustainable cryptocurrency mining, addressing this emerging global energy challenge. Results confirm the economic viability of the studied HRS by analyzing the simple payback period. Ultimately, the integrated optimization framework is adaptable and flexible, suitable for future research to provide valuable insights for advancements in RFB and HRS technologies toward developing efficient, cost-effective, and environmentally sustainable energy solutions.
Much of the attention on bitcoin relates to its ability to store value over time or whether you will one day by able to buy a cup of coffee with it. Much less attention is given to bitcoin's potential role as a unit of account. This opinion piece proposes that bitcoin has potential to provide a consistent unit of account for organisations to adopt, but also to assist them in making and measuring meaningful business developments. The paper draws from the business improvement philosophy of Theory of Constraints to propose that unit of account, particularly within high inflation environments, is critical to consider. An illustrative case of a well-known publicly traded company, Microstrategy, provides an example and logic for a company choosing to integrate bitcoin into a business. The paper also gives attention to how the adoption of bitcoin can promote the development of renewable energy infrastructure and provide staff with opportunities for personal development to support their well-being. Opportunities for further research are identified to explore the integration of bitcoin within a business as well as with Theory of Constraints.
The sporadic nature of renewable energy sources has led to increased energy curtailment. Hence, the necessity to efficiently utilize curtailed renewable energy using Battery Energy Storage Systems (BESS) and hydrogen technology is paramount. This study explores curtailed renewable energy (wind and solar) utilization through three cases: Case 1 - BESS, Case 2 - alkaline water electrolyzer (AWE) for hydrogen energy, and Case 3 - a hybrid system (BESS and AWE). Hourly data for California in 2020 is used. Dynamic optimization tackles the mixed-integer linear programming (MILP) problem, aiming to maximize profits across scenarios. Factors include power source (wind, solar, or hybrid), energy storage (BESS, hydrogen, or hybrid), and curtailed power availability (25 % to 100 %). Results show that 100 % solar curtailment availability in Case 2 yields highest profits and rapid payback in California. Cases 1 and 3 underperform due to high BESS capital, replacement, and degradation costs. The study, catering to operators and investors, explores curtailed energy dimensions for profit. Comprehensive cost considerations, encompassing BESS degradation, operational, and variable costs, ensure precise estimates. Sensitivity analysis underscores the crucial role of technology costs, suggesting avenues for expense reduction. The study provides guidance for effective curtailed energy repurposing, considering evolving technology costs.
The United Nations (UN) expectations for 2030 account for a renewable, affordable, and eco-friendly energy future. The 2030 agenda includes 17 different Sustainable Development Goals (SDGs) for countries worldwide. In this work, the 7th SDG: Affordable and Clean Energy, is brought into focus. For this goal, five main challenges are discussed: (i) limiting the use of fossil fuels; (ii) migrating towards diversified and renewable energy matrices; (iii) decentralizing energy generation and distribution; (iv) maximizing energy and energy storage efficiency; and (v) minimizing energy generation costs of chemical processes. These challenges are thoroughly scrutinized and surveyed in the context of recent developments and technologies including energy planning and supervision tools employed in the Global South. The discussion of these challenges in this work shows that the realization of SDG 7, whether partially or in full, within the Global South and global contexts, is possible only if existing technologies are fully implemented with the necessary international and national policies. Among the key solutions identified in addressing the five main challenges of SDG 7 are a global climate agreement; increased use of non-fossil fuel energy sources; Global North assistance and investment; reformed global energy policies; smart grid technologies and real time optimization and automation technologies.
Correction for ‘Mining bitcoins with carbon capture and renewable energy for carbon neutrality across states in the USA’ by Haider Niaz et al. , Energy Environ. Sci. , 2022, DOI: https://doi.org/10.1039/d1ee03804d.
Heat pumps are widely recognized as a key clean energy technology in the energy transition. While the global heat pump market has expanded significantly, more than doubling in some countries in a single year, expanded policy support will be needed to build confidence in the technology and meet climate goals.
Cost-effective energy storage is a critical enabler for the large-scale deployment of renewable electricity. Significant resources have been directed toward developing cost-effective energy storage, with research and development efforts dominated...
To research returns and volatility of Bitcoin (BTC), this paper uses daily closing price of Bitcoin from October 1st, 2013 to July 31th, 2020 to be sample data, and there are 2496 observations in the data. In methodology, the paper utilizes GARCH models to analyze Bitcoin's returns and volatility. Firstly, the data is tested by ADF test to verify stability and diagram tests sequence. After that, lag order and determination of mean value equation shows lag 4 period is the best. Besides, the paper does autocorrelation test of residual series and find that there is no significant autocorrelation in the residual term of the Bitcoin returns, but the residual squared has significant autocorrelation. In addition, the paper makes a linear graph of squared residuals and use ARCH-LM test to find the data is suitable to modeling by GARCH models, because the data has strong ARCH effect. In results, this paper use GARCH (1, 1) model to find that returns and volatility of Bitcoin have clustering characteristics and returns and volatility of Bitcoin is a persistent process, but its effect gradually reduces by the time. Because of limitation of GARCH (1, 1) model and researching asymmetry of returns and volatility of Bitcoin, this paper uses TARCH and EGARCH models to find that returns and volatility of Bitcoin is without "Leverage Effect". In order to further explaining this special phenomenon, safe-property is quoted in this research. In the end, this paper finds that Bitcoin as a safe-haven property can hedge financial risks in economic depression time, and it has a revised asymmetric effect between positive and negative shocks, so it is a conducive asset to add into portfolios of investors.
The Paris Agreement aims to limit global mean warming in the twenty-first century to less than 2 degrees Celsius above preindustrial levels, and to promote further efforts to limit warming to 1.5 degrees Celsius¹. The amount of greenhouse gas emissions in coming decades will be consequential for global mean sea level (GMSL) on century and longer timescales through a combination of ocean thermal expansion and loss of land ice². The Antarctic Ice Sheet (AIS) is Earth’s largest land ice reservoir (equivalent to 57.9 metres of GMSL)³, and its ice loss is accelerating⁴. Extensive regions of the AIS are grounded below sea level and susceptible to dynamical instabilities5–8 that are capable of producing very rapid retreat⁸. Yet the potential for the implementation of the Paris Agreement temperature targets to slow or stop the onset of these instabilities has not been directly tested with physics-based models. Here we use an observationally calibrated ice sheet–shelf model to show that with global warming limited to 2 degrees Celsius or less, Antarctic ice loss will continue at a pace similar to today’s throughout the twenty-first century. However, scenarios more consistent with current policies (allowing 3 degrees Celsius of warming) give an abrupt jump in the pace of Antarctic ice loss after around 2060, contributing about 0.5 centimetres GMSL rise per year by 2100—an order of magnitude faster than today⁴. More fossil-fuel-intensive scenarios⁹ result in even greater acceleration. Ice-sheet retreat initiated by the thinning and loss of buttressing ice shelves continues for centuries, regardless of bedrock and sea-level feedback mechanisms10–12 or geoengineered carbon dioxide reduction. These results demonstrate the possibility that rapid and unstoppable sea-level rise from Antarctica will be triggered if Paris Agreement targets are exceeded.
The growing energy consumption and associated carbon emission of Bitcoin mining could potentially undermine global sustainable efforts. By investigating carbon emission flows of Bitcoin blockchain operation in China with a simulation-based Bitcoin blockchain carbon emission model, we find that without any policy interventions, the annual energy consumption of the Bitcoin blockchain in China is expected to peak in 2024 at 296.59 Twh and generate 130.50 million metric tons of carbon emission correspondingly. Internationally, this emission output would exceed the total annualized greenhouse gas emission output of the Czech Republic and Qatar. Domestically, it ranks in the top 10 among 182 cities and 42 industrial sectors in China. In this work, we show that moving away from the current punitive carbon tax policy to a site regulation policy which induces changes in the energy consumption structure of the mining activities is more effective in limiting carbon emission of Bitcoin blockchain operation.
As the price of Bitcoin rises, the negatively externalities associated with Bitcoin mining increase in kind. This article shows how a simple economic model may be used to estimate the potential environmental impact of Bitcoin mining for a given Bitcoin price. These estimates reveal that the record-breaking surge in Bitcoin price at the start of 2021 may result in the network consuming as much energy as all data centers globally, with an associated carbon footprint matching London’s footprint size.
Suppose there is Bitcoin nation and its currency bitcoin; with market capitalization of 909 billion), Saudi Arabia (754 billion), and Switzerland (58,330 on February 21, 2021). In the absence of a regulatory hurdle, imagine what price levels Bitcoin may have achieved, $1,000,000? Raging a war against Bitcoin and altcoins can potentially have adverse effects on future developments of innovative technologies that are essential to building great civilizations.
This study estimates the environmental impact of mining Bitcoin, the most well-known blockchain-based cryptocurrency, and contributes to the discussion on the technology's supposedly large energy consumption and carbon footprint. The lack of a robust methodological framework and of accurate data on key factors determining Bitcoin's impact have so far been the main obstacles in such an assessment. This study applied the well-established Life Cycle Assessment methodology to an in-depth analysis of drivers of past and future environmental impacts of the Bitcoin mining network. It was found that, in 2018, the Bitcoin network consumed 31.29 TWh with a carbon footprint of 17.29 MtCO2-eq, an estimate that is in the lower end of the range of results from previous studies. The main drivers of such impact were found to be the geographical distribution of miners and the efficiency of the mining equipment. In contrast to previous studies, it was found that the service life, production, and end-of-life of such equipment had only a minor contribution to the total impact, and that while the overall hashrate is expected to increase, the energy consumption and environmental footprint per TH mined is expected to decrease.
Solar energy has the potential to offset a significant fraction of non-renewable electricity demands globally, yet it may occupy extensive areas when deployed at this level. There is growing concern that large renewable energy installations will displace other land uses. Where should future solar power installations be placed to achieve the highest energy production and best use the limited land resource? The premise of this work is that the solar panel efficiency is a function of the location’s microclimate within which it is immersed. Current studies largely ignore many of the environmental factors that influence Photovoltaic (PV) panel function. A model for solar panel efficiency that incorporates the influence of the panel’s microclimate was derived from first principles and validated with field observations. Results confirm that the PV panel efficiency is influenced by the insolation, air temperature, wind speed and relative humidity. The model was applied globally using bias-corrected reanalysis datasets to map solar panel efficiency and the potential for solar power production given local conditions. Solar power production potential was classified based on local land cover classification, with croplands having the greatest median solar potential of approximately 28 W/m2. The potential for dual-use, agrivoltaic systems may alleviate land competition or other spatial constraints for solar power development, creating a significant opportunity for future energy sustainability. Global energy demand would be offset by solar production if even less than 1% of cropland were converted to an agrivoltaic system.
We provide a model of an endowment economy with two competing, but intrinsically worthless currencies (Dollar, Bitcoin). Dollars are supplied by a central bank to achieve its inflation target, while the Bitcoin supply grows deterministically. Our fundamental pricing equation implies in its simplest form that Bitcoin prices form a martingale. “Mutual impatience” implies absence of speculation. Price volatility therefore does not invalidate the medium-of-exchange function. Bitcoin block rewards are not a tax on Bitcoin holders: they are financed with a Dollar tax. We discuss monetary policy implications, Bitcoin production, taxation, welfare and entry, and characterize the range of equilibria.
In this paper we find that the Bitcoin network, with an electrical energy footprint of 491.4 to 765.4 kWh per transaction on average, is relatively much more energy-hungry than the traditional financial system. Even though it has been argued that renewable energy may help mitigating the environmental impact of this, we find that there exist fundamental challenges in uniting variable renewable energy production with the consistent demand of Bitcoin mining machines. Moreover, we find that the environmental impact of Bitcoin mining reaches beyond its energy use. Continuous increasing energy (cost) efficiency of newer iterations of mining devices ensures that older ones will inevitably be disposed on a regular basis. The resulting electronic waste generation could equal that of a small country like Luxembourg, with a staggering average footprint of four light bulbs worth of electronic waste per processed Bitcoin transaction. Bitcoin will therefore have to address its sustainability problem in another way. This may consist of replacing its mining mechanism with a greener alternative like Proof-of-Stake.
When an author under the pseudonym Satoshi Nakamoto published the paper “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008, the first cryptocurrency using the new blockchain technology was introduced. Over the last decade, more than 1,000 different cryptocurrencies, such as Ethereum, Ripple, and Litecoin were developed and Bitcoin's currency had almost reached an equivalent value of 20,000 $/BTC. After recognizing the disrupting momentum that the blockchain technology generated, scientists started to develop blockchain use cases for the energy sector. However, the scientific literature so far offers only rough and incomplete estimations when questions about the current and future energy consumption of the Bitcoin network are raised. This paper introduces a new scenario model to estimate the mining power demand of the Bitcoin and Ethereum network. Six scenarios are developed on the basis of mining hardware efficiency and network parameter data. The results show that an increase of the mining hardware efficiency will only have a limited impact on the overall power demand of blockchain networks. Furthermore, the current power demand of the Ethereum network is in the range from 0.6 to 3 GW and therefore, is similar to the one of Bitcoin. In case of linear growth of the block difficulty and sigmoidal increase of the hardware efficiency until the year of 2025, the mining power demand for the Bitcoin blockchain will be approximately 8 GW. Furthermore, the model and the scenarios are adaptable to other cryptocurrencies that use the proof-of-work consensus algorithm to create scenarios for their future power demand.
Blockchains or distributed ledgers are an emerging technology that has drawn considerable interest from energy supply firms, startups, technology developers, financial institutions, national governments and the academic community. Numerous sources coming from these backgrounds identify blockchains as having the potential to bring significant benefits and innovation. Blockchains promise transparent, tamper-proof and secure systems that can enable novel business solutions, especially when combined with smart contracts. This work provides a comprehensive overview of fundamental principles that underpin blockchain technologies, such as system ar-chitectures and distributed consensus algorithms. Next, we focus on blockchain solutions for the energy industry and inform the state-of-the-art by thoroughly reviewing the literature and current business cases. To our knowledge, this is one of the first academic, peer-reviewed works to provide a systematic review of blockchain activities and initiatives in the energy sector. Our study reviews 140 blockchain research projects and startups from which we construct a map of the potential and relevance of blockchains for energy applications. These initiatives were systematically classified into different groups according to the field of activity, implementation platform and consensus strategy used. 1 Opportunities, potential challenges and limitations for a number of use cases are discussed, ranging from emerging peer-to-peer (P2P) energy trading and Internet of Things (IoT) applications , to decentralised marketplaces, electric vehicle charging and e-mobility. For each of these use cases, our contribution is twofold: first, in identifying the technical challenges that blockchain technology can solve for that application as well as its potential drawbacks, and second in briefly presenting the research and industrial projects and startups that are currently applying blockchain technology to that area. The paper ends with a discussion of challenges and market barriers the technology needs to overcome to get past the hype phase, prove its commercial viability and finally be adopted in the mainstream.
There are now hundreds of cryptocurrencies in existence and the technological backbone of many of these currencies is blockchain—a digital ledger of transactions. The competitive process of adding blocks to the chain is computation-intensive and requires large energy input. Here we demonstrate a methodology for calculating the minimum power requirements of several cryptocurrency networks and the energy consumed to produce one US dollar’s (US, respectively. Comparatively, conventional mining of aluminium, copper, gold, platinum and rare earth oxides consumed 122, 4, 5, 7 and 9 MJ to generate one US$, respectively, indicating that (with the exception of aluminium) cryptomining consumed more energy than mineral mining to produce an equivalent market value. While the market prices of the coins are quite volatile, the network hashrates for three of the four cryptocurrencies have trended consistently upward, suggesting that energy requirements will continue to increase. During this period, we estimate mining for all 4 cryptocurrencies was responsible for 3–15 million tonnes of CO2 emissions. © 2018, The Author(s), under exclusive licence to Springer Nature Limited.
Bitcoin is a power-hungry cryptocurrency that is increasingly used as an investment and payment system. Here we show that projected Bitcoin usage, should it follow the rate of adoption of other broadly adopted technologies, could alone produce enough CO2 emissions to push warming above 2 °C within less than three decades.
A cumulative emissions approach is increasingly used to inform mitigation policy. However, there are different interpretations of what ‘2°C’ implies. Here it is argued that cost-optimization models, commonly used to inform policy, typically underplay the urgency of 2°C mitigation. The alignment within many scenarios of optimistic assumptions on negative emissions technologies (NETs), with implausibly early peak emission dates and incremental short-term mitigation, delivers outcomes commensurate with 2°C commitments. In contrast, considering equity and socio-technical barriers to change, suggests a more challenging short-term agenda. To understand these different interpretations, short-term CO2 trends of the largest CO2 emitters, are assessed in relation to a constrained CO2 budget, coupled with a ‘what if’ assumption that negative emissions technologies fail at scale. The outcomes raise profound questions around high-level framings of mitigation policy. The article concludes that applying even weak equity criteria, challenges the feasibility of maintaining a 50% chance of avoiding 2°C without urgent mitigation efforts in the short-term. This highlights a need for greater engagement with: (1) the equity dimension of the Paris Agreement, (2) the sensitivity of constrained carbon budgets to short-term trends and (3) the climate risks for society posed by an almost ubiquitous inclusion of NETs within 2°C scenarios.
Policy relevance
Since the Paris meeting, there is increased awareness that most policy ‘solutions’ commensurate with 2°C include widespread deployment of negative emissions technologies (NETs). Yet much less is understood about that option’s feasibility, compared with near-term efforts to curb energy demand. Moreover, the many different ways in which key information is synthesized for policy makers, clouds the ability of policy makers to make informed decisions. This article presents an alternative approach to consider what the Paris Agreement implies, if NETs are unable to deliver more carbon sinks than sources. It illustrates the scale of the climate challenge for policy makers, particularly if the Agreement’s aim to address ‘equity’ is accounted for. Here it is argued that much more attention needs to be paid to what CO2 reductions can be achieved in the short-term, rather than taking a risk that could render the Paris Agreement’s policy goals unachievable.
Wind power development in Minnesota largely has been focused in the ‘‘windy’’ southwestern part of the state. This research evaluates the additional power that potentially could be generated via low wind speed turbines, particularly for areas of the state where there has been comparatively little wind energy investment. Data consist of 3 years (2002–2004) of wind speed measurements at 70–75m above ground level, at four sites representing the range of wind speed regimes (Classes 2–5) found in Minnesota. Power estimates use three configurations of the General Electric 1.5-MW series turbine that vary in rotor diameter and in cut-in, cut-out, and rated speeds. Results show that lower cut-in, cut-out, and rated speeds, and especially the larger rotor diameters, yield increases of 15–30% in wind power potential at these sites. Gains are largest at low wind speed (Class 2) sites and during the summer months at all four sites. Total annual wind power at each site shows some year-to-year variability, with peaks at some sites partially compensating for lulls at others. Such compensation does not occur equally in all years: when large-scale atmospheric circulation patterns are strong (e.g., 2002), the four sites show similar patterns of above- and below-average wind power, somewhat reducing the ability of geographic dispersion to mitigate the effects of wind speed variability.
The world is facing a formidable climate predicament due to elevated greenhouse gas (GHG) emissions from fossil fuels. The preceding decade has also witnessed a dramatic surge in blockchain-based applications, constituting yet another substantial energy consumer. Nonfungible tokens (NFTs) are one such application traded on Ethereum (ETH) marketplaces that have raised concerns about their climate impacts. The transition of ETH from proof of work (PoW) to proof of stake (PoS) is a step toward reducing the carbon footprint of the NFT sector. However, this alone will not address the climate impacts of the growing blockchain industry. Our analysis indicates that NFTs can cause yearly GHG emissions of up to 18% of the peak under the energy-intensive PoW algorithm. This results in a significant carbon debt of 4.56 Mt CO2-eq by the end of this decade, equivalent to CO2 emissions from a 600-MW coal-fired power plant in 1 y which would meet residential power demand in North Dakota. To mitigate the climate impact, we propose technological solutions to sustainably power the NFT sector using unutilized renewable energy sources in the United States. We find that 15% utilization of curtailed solar and wind power in Texas or 50 MW of potential hydropower from existing nonpowered dams can support the exponential growth of NFT transactions. In summary, the NFT sector has the potential to generate significant GHG emissions, and measures are necessary to mitigate its climate impact. The proposed technological solutions and policy support can help promote climate-friendly development in the blockchain industry.
The metaverse, an immersive combination of the physical and digital world, is becoming a booming industry with the potential to reach billions of users before 2030, but the climate impacts...
Since the energy sector is the dominant contributor to global greenhouse gas emissions, the decarbonization of energy systems is crucial for climate change mitigation. Two major challenges of energy systems decarbonization are renewable transition planning and sustainable systems operations. To address the challenges, incorporating emerging information and communication technologies can facilitate both the design and operations of future smart energy systems with high penetrations of renewable energy and decentralized structures. The present work provides a comprehensive overview of the applicability of emerging information and communication technologies in renewable transition and smart energy systems, including artificial intelligence, quantum computing, blockchain, next-generation communication technologies, and the metaverse. Relevant research directions are introduced through reviewing existing literature. This review concludes with a discussion of the industrial use cases and demonstrations of smart energy technologies.
In 2020, the Wyoming Legislature enacted House Bill No. 0200 (HB0200), which requires utilities to generate a percentage of dispatchable and reliable low-carbon electricity by 2030. This state requirement must take into consideration “any potentially expiring federal tax credits,” such as the federal Section 45Q tax credit. This study aims to examine the potential role of economic and policy incentives that facilitate carbon capture and sequestration (CCS) deployment. A unit-level retrofit analysis shows that deploying CCS at existing coal-fired power plants in Wyoming to meet the HB0200 emission limit would decrease the net efficiency by 29% and increase the levelized cost of electricity by 237% on the fleet average. The CO2 avoidance cost varies by unit from 50 per metric ton of CO2 for saline-reservoir storage can lower the avoidance cost by 47% on the fleet average. The proposed enhancement of the tax credit to $85/t would offset the added cost for CCS deployment for a total capacity of 3.4 GW. Joint policy and economic incentives can encourage fossil fuel abatement to play a firm role in energy transition.
An increased capacity to produce renewable energy has led to power curtailments due to the lack of storage for energy oversupply. This excess energy could make a profit if it was used and managed effectively. Bitcoin, with its recent boom, associated market values, and excessive energy consumption during mining presents a win–win proposition for managing renewable energy curtailments. Therefore, in a bid to minimize renewable energy curtailments from the perspective of the independent system operator (ISO) while maximizing the profit for the investor, this study attempts to discover the optimal planning and operation of a bitcoin mining farm to minimize renewable energy curtailments. Specifically, renewable energy curtailments for the Energy Reliability Council of Texas (ERCOT) at an hourly resolution and the difficulty and price, respectively of bitcoin mining during 2020 and 2021, were considered in our analysis of the cost and profitability of bitcoin mining using curtailed renewable power. Besides, a greenhouse gas (GHG) analysis was also conducted to evaluate the annual emissions from each of the cases considered in this study. The results demonstrated that 93% of the curtailed energy could be used at a minimal cost to generate a 605 million. Cost minimization case scenario had the least amount of emissions followed by profit maximization case with penalty scenario. Sensitivity analyses and Monte-Carlo simulations were performed to investigate the effect of system parameters on the optimization results for an in-depth analysis of possible policy and investment decisions from the perspectives of both the ISOs and investors. Despite the uncertainties associated with the price of bitcoin, it was estimated that ERCOT, with its current renewable energy curtailments, would still be profitable in the case of profit maximization if the bitcoin price remains above $6800 throughout the year. Accordingly, bitcoin mining has substantial potential for becoming an effective medium to prevent renewable energy curtailments and turn energy oversupply into profit.
Non-fungible Tokens (NFTs) are blockchain-enabled cryptographic assets that represent proof-of-ownership for digital objects. The use of NFTs has been pioneered by creative indus-try entrepreneurs who have sought to generate new revenue streams and modes of stakehold-er engagement. Despite rapid growth in popularity, concerns have been raised around the le-gal ownership of NFT assets and the prevalence of speculation and fraud associated with NFT trading. In this rapid response article, we explore the value of NFTs for creative industry entrepreneurs. First, we examine the novel digital affordances of the technology; second, we analyse NFTs through the prism of the recent Initial Coin Offering (ICO) boom and bust; and finally, we take a longer-term historical perspective to consider how past speculative waves inform the present NFT economy. While we identify some potentially valuable artistic and financial opportunities for creative industry entrepreneurs, we conclude that NFTs should be approached with caution.
Heat pumps represent an important opportunity for energy savings and decarbonization. This work investigates the techno-economic performance of high-temperature heat pumps (HTHPs) for use in the U.S. dairy industry. The studied heat pump performs a 50 °C temperature lift on a waste heat stream of cleaning water and applies the upgraded heat stream to a fluid milk pasteurization process. This work involved the creation of a HTHP model that estimated the coefficient of performance (COP), internal rate of return (IRR), net present value (NPV), and payback period (PBP), and emissions saved for a heat pump replacing a natural gas boiler. Capital costs, operations, and maintenance (O&M) cost, heat pump lifetime, electricity prices, natural gas prices, and a cost of carbon were varied to perform a parametric study on the factors affecting the break-even price of HTHPs. The results show that HTHP economics are highly sensitive to COP and energy price environment, and less sensitive to capital and O&M cost variance, leading to a large scatter of positive and negative NPVs based on U.S. location. PBPs demonstrate a defined threshold, based on energy price environment, below which favorable two-to-three-year PBPs predominate. This work is focused on the U.S. dairy industry, but international application in relation to fossil vs. electricity price regimes. Heat pumps have seen wider adoption in regions with a high ratio of fossil energy to electricity prices (/kWh). The U.S. has plentiful natural gas resulting in lower fossil energy prices which has reduced heat pump adoption. This paper identifies potential first mover industries for HTHP adoption and their associated price regimes even in regions with lower ratios of fossil energy to electricity prices that exist many places globally.
Major cryptocurrencies such as bitcoin and etherium rely on the computationally expensive and energy inefficient Proof of Work (PoW) consensus mechanism to validate transactions and secure their networks. In response to such concerns digital coins that implement more energy efficient algorithms, e.g. Proof of Stake (PoS), have started to grow in popularity and some PoW based coins are planning to switch to PoS. We investigate linkages and transmission of price shocks across fourteen PoW and PoS/Other powered digital assets. PoW cryptocurrencies appear to be more strongly connected within the network of digital coins than are PoS/Other digital currencies. On average PoW coins export more uncertainty to other cryptocurrencies, while assets in both groups import similar levels of risk. PoS/Other cryptocurrency stakeholders need to be aware of the impact that PoW cryptocurrencies can exert on the riskiness of their assets.
Power system decarbonization is critical for combating climate change, and handling systems uncertainties is essential for designing robust renewable transition pathways. In this study, a bottom-up data-driven multistage adaptive robust optimization (MARO) framework is proposed to address the power systems’ renewable transition under uncertainty. To illustrate the applicability of the proposed framework, a case study for New York State is presented. Machine learning techniques, including a variational algorithm for Dirichlet process mixture model, principal component analysis, and kernel density estimation, are applied for constructing data-driven uncertainty sets, which are integrated into the proposed MARO framework to systematically handle uncertainty. The results show that the total renewable electricity transition costs under uncertainty are 21%-42% higher than deterministic planning, and the costs under the data-driven uncertainty sets are 2%-17% lower than the conventional uncertainty sets. By 2035, on-land wind and offshore wind would be the major power source for the deterministic planning case and robust optimization cases, respectively.
Energy system decarbonization has been a critical measure to combat climate change, and an optimization framework modelling this process would facilitate designing cost-effective energy transition pathways. In this study, a bottom-up optimization framework for energy transitions is developed, which bridges the decarbonization processes for the power sector and the space heating sector, while considering energy system stability, climate targets and scheduled system changes. Our results show that the decarbonization goals of New York State are feasible for electricity and space heating energy system. By 2050, Offshore wind would be the main electricity source that generates 66% of power, while air source heat pumps and geothermal technologies would provide 47% and 41% of heat demands, respectively. It is also discussed how the results can facilitate developing energy transition policies regarding carbon price and geothermal technologies. Our findings reveal the feasibility of carbon neutral energy transition using renewable generation, energy storage, and energy-efficient technologies.
Renewable energy sources such as wind power are increasing their share of the world energy matrix. In Brazil, the regulator promotes reverse bid auctions where the winner agrees to begin production a number of years ahead under a long-term contract. If a wind farm project chooses to anticipate construction, it can sell its energy in the short-term market but becomes subject to electricity price volatility. In order to create incentives for early investment, we propose that wind farm investors can hedge electricity price risk by simultaneously investing in a cryptocurrency mining facility that uses electricity as input to produce newly minted Bitcoins. As electricity and Bitcoin prices are uncorrelated, the ability to switch between these outputs allows the wind farm to maximize revenues and minimize losses. We develop a numerical application under the real options approach to determine the financial impact of the investment in a Bitcoin facility for the wind energy producer that will allow it to optimally switch outputs depending on the relative future prices of electricity and Bitcoins. The short-term energy price and Bitcoin price/mining-difficulty ratio are modeled as distinct stochastic diffusion processes. The results indicate that the option to switch outputs significantly increases the generator's revenue while simultaneously decreasing the risk of anticipating the construction. These findings, which can also be applied to other renewable energy sources, may be of interest to both the energy generator as well as the system regulator as it creates an incentive for early investment in sustainable and renewable energy sources.
In this work we provide a perspective on Process Systems Engineering (PSE) in the context of sustainability, reviewing the main tools available and describing major applications in sustainability problems spanning multiple scales, from molecules, through chemical plants, and finally the enterprise and macroeconomic levels. After highlighting the potential role of PSE in meeting the UN Sustainable Development Goals, we discuss future research directions, focusing on major modelling and algorithmic challenges along with the trend to explore new application domains beyond chemical engineering while still revisiting problems within the core discipline.
Microgrids are often designed as energy systems that supply electrical and thermal loads with local resources such as combined heat and power units, renewable energy sources, diesel generators, and others. However, increasing interaction between natural gas and electrical systems, in addition to increased penetration of natural gas fired units gives rise to both opportunities and challenges in microgrid operation scheduling. In this paper, the energy hub concept is used to construct a scenario-based model for the optimal scheduling of electrical and thermal resources in a microgrid with integrated electrical and natural gas infrastructures. The objective function of the proposed model minimizes the expected operation costs while considering all network constraints and uncertainties. The natural gas and electricity flow equations are linearized and formulated as a mixed-integer linear programming problem. Scenarios associated with stochastic variables such as renewable generation and electrical and thermal loads are generated using the corresponding probability distribution functions and reduced using a scenario reduction technique. The proposed model is applied to an energy hub-based microgrid and the simulation results demonstrate the effectiveness of the approach. Furthermore, the benefits of implementing electrical and thermal demand response schemes are quantified. Also, more in-depth analyses for this network-constrained model are performed, including natural gas flow rate variations, natural gas pressures, power flow, and nodal voltages.
For sustainable production and consumption, emerging green technologies need to be optimized towards a minimal environmental impact and a maximal economic impact. In an early stage of technology development, more flexibility is available to adapt the technology. Therefore, a prospective environmental and techno-economic assessment is required. The prospective assessment differs at the different stages of technology development, as also the data availability and accuracy evolves. This paper reviews the different prospective technological, economic and environmental assessment methods which have been used to assess the potential of new green chemical technologies. Based on the current best practices, an overarching framework is introduced to assess the technological, economic and environmental potential of an emerging green chemical technology at the different stages of technology development.
Participation in the Bitcoin blockchain validation process requires specialized hardware and vast amounts of electricity, which translates into a significant carbon footprint. Here, we demonstrate a methodology for estimating the power consumption associated with Bitcoin’s blockchain based on IPO filings of major hardware manufacturers, insights on mining facility operations, and mining pool
compositions. We then translate our power consumption estimate into carbon emissions, using the localization of IP addresses. We determine the annual electricity consumption of Bitcoin, as of November 2018, to be 45.8 TWh and estimate that annual carbon emissions range from 22.0 to 22.9 MtCO2. This means that the emissions produced by Bitcoin sit between the levels produced by the
nations of Jordan and Sri Lanka, which is comparable to the level of Kansas City. With this article, we aim to gauge the external costs of Bitcoin and inform the broader debate on the costs and benefits of cryptocurrencies.
This article addresses the optimal design of carbon-neutral hybrid energy system with deep water source cooling, biomass heating, and geothermal heat and power. A novel superstructure of the proposed hybrid energy system comprised of an enhanced geothermal system, a torrefied biomass-based combustion system, and a deep water source cooling system with conventional chillers as auxiliaries, is developed. Based on the superstructure of the proposed hybrid energy system, we develop a multi-period optimization model to minimize a fractional metric, the levelized cost. Because the main product of the hybrid energy system is heat, the levelized cost is expressed as levelized cost of heat, with other byproducts indirectly incorporated by using credits. The resulting nonconvex mixed-integer nonlinear fractional programming problem is efficiently solved by using a tailored optimization algorithm. Two case studies based on Cornell's campus in Ithaca, New York are presented to quantify the effect of different electric power sources on the technoeconomic objective, as well as the life cycle greenhouse gas emissions. The first case study considers electric power from natural gas, while a carbon-neutral electric power supply based on renewable geothermal energy is envisioned in the second case study. Results show that switching the electric power supply from natural gas to geothermal energy could reduce the greenhouse gas emissions by 24.5%, while only increasing the levelized cost of heat by 5.6%. The carbon footprint for both case studies are promisingly low, compared with numerous existing heat generation technologies. Through sensitivity analysis, the project lifetime is identified as the most influential input parameter.
Scientists leverage advancing tools to gather evidence and expand the capacity of human rights groups
Energy demand for heating and cooling constitutes almost 50% of the total energy demand in Europe and strongly depends on fossil fuels. Decarbonising this sector and providing a sustainable supply should be a main goal of climate policy. The technical and economic feasibility of supply options depends strongly on local conditions. The focus of this research is to assess the cost-effectiveness of sustainable heat and cold supply solutions under southern European conditions. We use the city of Matosinhos (Portugal) as an example. The methodology includes estimation of thermal demands and hourly simulation of alternative supply scenarios.
The results show that, from a socio-economic perspective, the use of excess heat from a refinery via a DHC network might be the economically most competitive option. In addition, the heat pump system combined with photovoltaics is cost-effective from a socio-economic perspective compared to the status quo if the capital costs of the status quo are also accounted for. This justifies support policies to also make it cost-competitive from a private economic perspective, which it currently is not. Sensitivity analyses were conducted for the most influential factors like capital investment costs, interest rate, and fuel prices.
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This paper provides an overview of sustainable design and synthesis of energy systems. We review recent progress and present major research challenges of the superstructure optimization based approach in terms of: (1) systematic generation of comprehensive process superstructures; (2) building optimization models that integrate techno-economic assessment with life cycle sustainability analysis while addressing uncertainty issues; (3) efficient computational algorithms for solving the resulting mixed-integer nonlinear optimization problems. Process integration and process intensification are briefly outlined as alternative approaches to sustainable design and synthesis of energy systems. This paper identifies several future research directions for sustainable design of energy systems, such as broadening the scope of sustainable design with a consequential perspective, handling uncertainties using multi-stage robust optimization techniques, and integrating standalone energy systems through multi-scale optimization.
The crystalline silicon heterojunction structure adopted in photovoltaic modules commercialized as Panasonic's HIT has significantly reduced recombination loss, resulting in greater conversion efficiency. The structure of an interdigitated back contact was adopted with our crystalline silicon heterojunction solar cells to reduce optical loss from a front grid electrode, a transparent conducting oxide (TCO) layer, and a-Si:H layers as an approach for exceeding the conversion efficiency of 25%. As a result of the improved short-circuit current (Jsc), we achieved the world's highest efficiency of 25.6% for crystalline silicon-based solar cells under 1-sun illumination (designated area: 143.7 cm2).
In recent years, many countries put an emphasis on the development and deployment of renewable energy to cope with the global environmental crisis such as depletion of fossil energy, climate convention to control emissions of greenhouse gases. Among the various new and renewable energy sources, the Korean government selected wind power energy as one of the core areas for R&D investments. In this paper, we evaluate the economic value of the investment in wind power energy R&D in Korea and optimal deployment timing of wind power technology by using the real option approach. The real option model adopted in this paper assumes that a decision maker has a compound option to abandon, deployment, or continue the R&D. As a result by using empirical data of Korea, it is found that there exists a considerable amount of positive economic value of investments in wind power energy R&D.
This fact sheet provides information and guidance on the solar photovoltaic (PV) power purchase agreement (PPA), which is a financing mechanism that state and local government entities can use to acquire clean, renewable energy. It addressed the financial, logistical, and legal questions relevant to implementing a PPA, but we do not examine the technical details?those can be discussed later with the developer/contractor. This fact sheet is written to support decision makers in U.S. state and local governments who are aware of solar PPAs and may have a cursory knowledge of their structure but they still require further information before committing to a particular project.
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.
A heat pump water heater (HPWH) operates on an electrically driven vapor-compression cycle and pumps energy from the air in its surroundings to water in a storage tank, thus raising the temperature of the water. HPWHs are a promising technology in both residential and commercial applications due to both improved efficiency and air conditioning benefits.Residential HPWH units have been available for more than 20 years, but have experienced limited success in the marketplace. Commercial-scale HPWHs are also a very promising technology, while their present market share is extremely low.This study dealt with reviewing HPWH systems in terms of energetic and exergetic aspects. In this context, HPWH technology along with its historical development was briefly given first. Next, a comprehensive review of studies conducted on them were classified and presented in tables. HPWHs were then modeled for performance evaluation purposes by using energy and exergy analysis methods. Finally, the results obtained were discussed. It is expected that this comprehensive review will be very beneficial to everyone involved or interested in the energetic and exergetic design, simulation, analysis, performance assessment and applications of various types of HPWH systems.
These charts show record renewable energy investment in 2022
- S Hall
Hall, S. These charts show record renewable energy investment
in 2022. https://www.weforum.org/agenda/2022/07/globalrenewable-energy-investment-iea/ (accessed March 27, 2023).
Germany to spend 200 billion euros on energy transition in independence push
- B Wehrmann
Wehrmann, B. Germany to spend 200 billion euros on energy
transition in independence push. https://www.cleanenergywire.org/
news/germany-spend-200-billion-euros-energy-transitionindependence-push (accessed March 27, 2023).
The East Is Green: China’s Global Leadership in Renewable Energy
- D Chiu
Chiu, D. The East Is Green: China's Global Leadership in
Renewable Energy. https://www.csis.org/east-green-chinas-globalleadership-renewable-energy (accessed March 27, 2023).