Tokyo Grid Operator Mines Bitcoin to Save Renewable Surplus

Agile Energy X, a subsidiary of Tokyo Electric Power Co. (TEPCO), is experimenting with bitcoin mining to prevent wasted renewable energy and encourage its adoption.

According to a report by Asahi Shimbun on Saturday, Agile Energy has installed bitcoin mining machines in Gunma and Tochigi prefectures, adjacent to solar farms. This initiative aims to utilize excess renewable energy capacity that would otherwise go to waste.

Founded in 2022 as a wholly owned subsidiary of TEPCO, a publicly listed grid operator in Japan, Agile Energy’s bitcoin mining project arose from the country’s “output control” practice for renewable energy producers.

To avoid power oversupply, especially during peak solar generation, renewable energy producers are often forced to curtail or shut down their operations, leading to the waste of green energy, according to the Asahi Shimbun report.

In December 2022, Agile Energy partnered with Triple-1, a semiconductor designer, to source mining chips for the project. A pilot demo at the time involved setting up a data center with 1,300 bitcoin miners, totaling 1,500 kilowatts of capacity, at a TEPCO business site in the Tokyo metropolitan area.

Agile Energy X’s simulations claim that if Japan achieves its goal of 50% renewable energy by 2050, a significant amount of energy will be wasted.

Agile Energy President Kenji Tateiwa said in the report that the mining profitability is currently limited due to output control levels. However, he believes that as Japan expands its renewable energy infrastructure, bitcoin mining will become a more viable solution to address wasted energy. This could provide a new financial incentive for renewable energy producers, further encouraging investment in green energy technologies.