Renewable Energy to Power 70% of Bitcoin Mining by 2030

Renewable energy could power over 70% of Bitcoin (BTC) mining operations by 2030, according to a report published by MiCA Crypto Alliance and data analytics firm Nodiens.

The report highlighted that this shift comes as miners move away from fossil fuels in favor of cleaner alternatives like wind, solar, hydro, and energy from waste.

Renewable Energy Use in Mining Sector

Renewable energy use in the mining sector stood at 41% by the end of 2024, compared to only 20% in 2011.

According to the report:

“The composition of renewable energy has diversified over time. Solar and wind energy have seen remarkable growth, reaching 6.07% and 10.86% of total energy consumption, respectively, by 2024.”

Meanwhile, the shift away from fossil fuels is already making an impact. Coal-based energy in Bitcoin mining dropped from 63% in 2011 to just 20% in 2024.

Embracing Green Energy

The report notes that economic incentives, changing energy trends, and evolving climate policies shape the industry’s pivot to renewables. These factors will push renewable adoption further over the next five years.

Bitcoin climate analyst Daniel Batten also highlighted the growing body of research supporting this trend. Out of 18 peer-reviewed studies on Bitcoin and energy published since 2023, 16 found that mining contributes positively to climate efforts and supports global clean energy goals.

Batten also noted that mining operations can help balance electricity grids and accelerate the shift to sustainable energy.

Several mining firms are actively driving this transition. BTC Digital is one of the early adopters of integrating green energy into its operations.

At the same time, countries like Ethiopia and Bhutan are stepping into the spotlight. In 2024 alone, Ethiopia reportedly earned around $1 billion from Bitcoin mining by utilizing surplus electricity generated by its Grand Renaissance Dam, a major hydropower facility.

Conclusion

In conclusion, the shift towards renewable energy in Bitcoin mining is a significant step towards a more sustainable future. As the industry continues to adopt cleaner energy sources, the environmental impact of mining will decrease, and the world will be one step closer to a carbon-neutral future.

FAQs

• What is the current renewable energy usage in Bitcoin mining? Renewable energy use in the mining sector stands at 41% as of 2024.
• What is the expected growth rate of renewable energy in Bitcoin mining? The report predicts that renewable energy will power over 70% of Bitcoin mining operations by 2030.
• What are the main drivers of the shift towards renewable energy in Bitcoin mining? Economic incentives, changing energy trends, and evolving climate policies are the main drivers of this shift.
• What is the role of mining operations in balancing electricity grids and accelerating the shift to sustainable energy? Mining operations can help balance electricity grids and accelerate the shift to sustainable energy, according to Bitcoin climate analyst Daniel Batten.