Japan’s TEPCO Explores Renewable Energy for Bitcoin Mining

A subsidiary of Tokyo Electric Power Company (TEPCO), Agile Energy X Inc., is venturing into Bitcoin mining using surplus renewable energy to power mining operations.

Based in Tokyo, Agile Energy X is exploring ways to utilize excess solar power for Bitcoin mining, a move that its president, Kenji Tateiwa, believes could lead to a broader adoption of green energy, a local media outlet The Asahi Shimbun reported yesterday. “What we are doing has few parallels in Japan,” said Tateiwa, who previously worked in TEPCO’s nuclear power division. “Success of our framework would prompt more green energy to be introduced.”

Tateiwa conceived the idea in 2018, during a period when Kyushu Electric Power Co. was implementing “output control” measures. These measures involve reducing renewable energy production below its potential to maintain a balance between supply and demand, preventing power grid instability. Under such conditions, renewable energy producers are sometimes required to limit or temporarily halt their power generation to avoid oversupply, especially during peak periods for solar power.

In Japan, curtailment practices have wasted a significant amount of renewable energy. A survey by The Asahi Shimbun reported that in 2023, about 1,920 gigawatt-hours of power were curtailed, roughly equivalent to the annual power consumption of 450,000 households. Agile Energy X has installed Bitcoin mining machines in Gunma and Tochigi prefectures, including areas adjacent to solar farms, to capture and use this excess energy. The company is exploring the use of these mining machines to generate Bitcoin when renewable energy production exceeds demand and would otherwise be wasted.

Tateiwa formed Agile Energy X in 2022 as a wholly owned subsidiary of TEPCO Power Grid Inc. to advance his idea and potentially share the knowledge with other utilities. The company aims to demonstrate how Bitcoin mining can be effectively integrated with renewable energy systems.

Agile Energy X’s internal simulations suggest that if renewable energy made up 50% of Japan’s power supply, as much as 240,000 gigawatt-hours could be wasted annually due to curtailment. According to the company’s estimates, utilizing 10% of this surplus power for Bitcoin mining could generate approximately 360 billion Japanese yen ($2.5 billion) in Bitcoin annually. Tateiwa commented, “More green energy could be introduced if BTC mining were to produce profits that could be part of corporate earnings.”

The idea of using excess renewable energy for Bitcoin mining has also attracted attention from industry figures abroad. Fred Thiel, chairman and CEO of Marathon Digital Holdings, a Bitcoin mining company, shared the report and commented in an X post, “Maybe US utilities should wake up and smell the roses.” Daniel Batten, an advocate for environmental, social, and governance principles, also commented, “While the EU has been busy gaslighting Bitcoin, Japan has been busy researching it.”

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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