Browsing by Subject "Bitcoin Mining"

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    Open Access
    Evaluating the economic feasibility of using excess energy from photovoltaic (PV) solar plants to mine cryptocurrencies that employ the Proof-of-Work consensus mechanism
    (2026) Mandlate, Helda; Abrahams, Kyle; Kanjere, Julian
    Bitcoin mining is the process by which new Bitcoin transactions are added to the Bitcoin blockchain and the total supply of Bitcoin in circulation is increased. Successful Bitcoin mining heavily depends on the hardware used; older hardware models are generally less efficient, consume more energy and make mining less economical, thereby necessitating frequent hardware upgrades to maintain profitability. In addition, Bitcoin is a Proof-of-Work (PoW) based cryptocurrency, and it is widely accepted that there is an urgent need to reduce the electricity costs and carbon footprint associated with mining cryptocurrencies that rely on the PoW consensus mechanism. While some countries are building renewable energy facilities specifically for cryptocurrency mining, there remains potential to explore the use of surplus energy produced by existing renewable energy sources for this purpose. This study investigates and demonstrates the potential of reducing waste excess energy from solar photovoltaic (PV) plants and redirecting it towards Bitcoin mining, paving the way for more sustainable and profitable mining. This study presents a case study where a 500 MW solar PV plant in South Africa is coupled with a cryptocurrency mine. Here, Bitcoin sales generate $25 million in annual revenue, with a minimum payback period of two years to recoup the investment in Bitcoin ASIC mining hardware. The primary contribution of this research is to highlight the economic benefits of utilising excess solar PV energy for cryptocurrency mining, and possibly removing the need for constant hardware upgrades. A Python-based model is employed to conduct sensitivity analyses on the profitability impacts of various factors, including mining rig types, solar PV plant locations, Bitcoin prices, and energy allocations for cooling; demonstrating the economic feasibility of mining Bitcoin from surplus solar PV energy.