A Tokyo Electric Power Company (Tepco) subsidiary, Agile Energy X, is making strides in the Bitcoin mining industry by utilizing wasted solar energy, an initiative that could boost the use of green energy. According to a report by Asahi Shimbun on September 8, Agile Energy X has begun testing Bitcoin mining operations powered by excess solar energy that would otherwise go unused due to Japan’s “output control” practices. These practices involve intentionally reducing energy production to manage supply and demand or to address transmission limitations.
Kenji Tateiwa, President of Agile Energy X, explained the potential impact of this initiative: “It would prompt more green energy to be introduced,” emphasizing the benefit of converting wasted renewable energy into a profitable venture. The subsidiary has set up mining rigs near solar farms in Gunma and Tochigi prefectures to capitalize on this excess energy.
In 2023, Japan saw about 1,920 gigawatt-hours of power curtailed, equivalent to the yearly consumption of approximately 450,000 households. Agile Energy’s simulations suggest that if renewables were to account for half of Japan’s energy, about 240,000 gigawatt-hours could be lost annually due to curtailment. The company estimates that using just 10% of this surplus for Bitcoin mining could potentially generate about 360 billion Japanese yen ($2.5 billion) in Bitcoin annually.
Tateiwa envisions that the profits from Bitcoin mining could significantly contribute to corporate earnings, thereby encouraging further adoption of green energy technologies. “Maybe US utilities should wake up and smell the roses,” commented Fred Thiel, CEO of Marathon Digital Holdings, highlighting the innovative approach taken by Japan compared to other regions. Daniel Batten, an advocate for environmental, social, and governance practices, also praised Japan’s proactive research into utilizing Bitcoin mining to support renewable energy efforts.
This method mirrors similar strategies employed by crypto mining firms in the United States, especially in Texas, where renewable energy is increasingly being used for grid balancing and enhancing the viability of green power sources.
