Collapsing The Grid by Increasing Demand While Decreasing Supply

Bitcoin miner comes to Lewiston, has plans for western Maine
Bitcoin mining is the process of earning Bitcoins — a decentralized digital currency, without a central bank or single administrator — in exchange for running the verification process to validate Bitcoin transactions. Miners can profit if the price of Bitcoins exceeds the cost to mine them.
“Miners use quite a bit of energy or power. Their power requirement is more intense than the cannabis companies out there. This space had existing power capacity and proximity to a CMP substation,” said Frank Carr of Maine Realty Advisors, who handled the Lewiston lease transaction.

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Comment by Willem Post on April 17, 2022 at 6:04am

EXCERPT from:

BATTERY SYSTEM CAPITAL COSTS, ENERGY LOSSES, AND AGING

https://www.windtaskforce.org/profiles/blogs/battery-system-capital...

APPENDIX 1

The various costs of making wind turbines have gone up, especially in Europe, due to increases in energy, materials, and transport prices

The cost of financing has increased, i.e., higher interest rates, because of the consumer price index, CPI, increasing at 8.5%/y, and the producer price index, PPI, increasing at 11.5%/y

 

Owners typically put up 50% of the turnkey capital cost of a wind, solar, or battery project, the rest is financed.

Owners typically make 9%/y on their investment, when bank interest rates are low, say 3.5%/y.

Owners may want to make a higher %/y, when bank interest rates are high.

 

All this translates in Owners having to sell their wind electricity at much higher prices, i.e., wind suddenly is not competitive with existing low-cost, domestic coal, natural gas, nuclear and hydro.

 

The same is happening due to re-pricing of:

 

1) Solar electricity

 http://www.windtaskforce.org/profiles/blogs/cost-shifting-is-the-na...

 

2) Grid-scale battery system services

https://www.windtaskforce.org/profiles/blogs/battery-system-capital...

 

3) EVs, and EV chargers, and EV charging

 

https://www.windtaskforce.org/profiles/blogs/poor-economics-of-elec...

https://www.windtaskforce.org/profiles/blogs/electric-bus-systems-l...

 

All that will make it much more expensive to reduce CO2 to “save the world from climate change” (if that were actually possible).

 

However, reducing fossil CO2 reduces biomass growth (which absorbs CO2)

The growing of crops for food has already been reduced, due to a shortage of fertilizer and phosphate from Belarus and Russia; their prices have become stratospheric. A world recession, or worse, may be in the offing.

 

Remember, all this is due to the US relentlessly pushing to expand NATO infrastructures and personnel beyond East Germany, which it had promised not to do in 1990. The USSR and the Warsaw Pact collapsed in 1991. NATO had become superfluous.

 

After the US-instigated color revolution in 2014, the US turned impoverished, corrupt, oligarchic Ukraine into a NATO-armed battering ram to reduce the security of Russia. See URL

https://www.windtaskforce.org/profiles/blogs/the-plot-is-thickening...

 

APPENDIX 2

EXCERPT from:

 

COST SHIFTING IS THE NAME OF THE GAME REGARDING WIND AND SOLAR

http://www.windtaskforce.org/profiles/blogs/cost-shifting-is-the-na...

 

EXHORBITANT REAL COST OF WIND AND SOLAR ELECTRICITY

 

“All-in” Electricity Cost of Wind and Solar in New England

 

https://www.windtaskforce.org/profiles/blogs/high-costs-of-wind-sol...

http://www.windtaskforce.org/profiles/blogs/cost-shifting-is-the-na...

 

Pro RE folks point to the “price paid to owner” as the cost of wind and solar, purposely ignoring the other cost categories. The all-in cost of wind and solar, c/kWh, includes:

 

1) Above-market-price paid to Owners 

2) Subsidies paid to Owners

3) Owner return on invested capital at about 9%/y

4) Grid extension/augmentation

5) Grid support services

6) Future battery systems

 

Comments on table 1

   

- Vermont legacy Standard Offer solar systems had greater subsidies paid to owner, than newer systems

 

- Wind prices paid to owner did not have the drastic reductions as solar prices.

 

- Vermont utilities are paid about 3.5 c/kWh for various costs they incur regarding net-metered solar systems

 

- "Added to rate base" is the cost wind and solar are added to the utility rate base, used to set electric rates.

 

- “Total cost”, including subsidies to owner and grid support, is the cost at which wind/solar are added to the utility rate base

 

- “NE utility cost” is the annual average cost of purchased electricity, about 6 c/kWh, plus NE grid operator charges, about 1.6 c/kWh

for a total of 7.6 c/kWh.

 

- “Grid support costs” would increase with increased use of battery systems to counteract the variability and intermittency of increased build-outs of wind and solar systems. See URL

https://www.windtaskforce.org/profiles/blogs/fuel-and-co2-reduction...

 

NOTES:

1) NE wholesale grid price averaged about 5 c/kWh, starting in 2009, due to low-cost CCGT and nuclear plants providing at least 65% of all electricity loaded onto the NE grid, in 2019.

 

https://www.iso-ne.com/about/key-stats/resource-mix/

https://nepool.com/uploads/NPC_20200305_Composite4.pdf


2) There are Owning costs, and Operating and Maintenance costs, of the NE grid

ISO-NE charges these costs to utilities at about 1.6 c/kWh. The ISO-NE charges include: 

 
Regional network services, RNS, based on the utility peak demand occurring during a month

Forward capacity market, FCM, based on the utility peak demand occurring during a year.

 

Table 1/VT & NE sources

Paid to

Subsidy

Grid

GMP

 Added

ISO-NE

Total

NE

Times

 

 

paid to

support

 

to rate

RNS+

 

utility

 

owner

towner

cost

adder

base

FCM

cost

cost

c/kWh

c/kWh

c/kWh

c/kWh

c/kWh

c/kWh

c/kWh

c/kWh

Solar, rooftop, net-metered, new

17.4

5.2

2.1

3.5

20.9

1.6

29.8

7.6

3.92

Solar, rooftop, net-metered, legacy

18.2

5.4

2.1

3.5

21.7

1.6

30.8

7.6

4.05

Solar, standard offer, combo

11.0

6.74

2.1

11.0

1.6

21.44

7.6

2.82

Solar, standard offer, legacy

21.7

10.5

2.1

21.7

1.6

35.9

7.6

4.72

Wind, ridge line, new

8.5

3.9

2.4

8.5

1.6

16.4

7.6

2.15

Wind, offshore, new

9.0

4.1

2.4

9.0

1.6

17.1

7.6

2.25

 

Sample calculation; NE utility cost = 6, Purchased + 1.6, (RNS + FCM) = 7.6 c/kWh

Sample calculation; added to utility base = 17.4 + 3.5 = 20.9 c/kWh

Sample calculation; total cost = 17.4 + 5.2 + 2.1 + 3.5 + 1.6 = 29.8 c/kWh

 

Excludes costs for very expensive battery systems

Excludes costs for very expensive floating, offshore wind systems

Excludes cost for dealing with shortfalls during multi-day wind/solar lulls. See URL

https://www.windtaskforce.org/profiles/blogs/wind-and-solar-provide...

 

“Added to rate base” is for recent 20-y electricity supply contracts awarded by competitive bidding in NE.

“Added to rate base” would be much higher without subsidies and cost shifting.

Areas with better wind and solar conditions, and lower construction costs/MW have lower c/MWh, than NE

New England has average winds, has highest on-shore turnkey costs ($2,400/kW in 2020), has highest PPA c/kWh

See page 39 of URL

https://www.energy.gov/sites/default/files/2021-08/Land-Based%20Win...

 

Comment by Long Islander on April 16, 2022 at 4:18pm

It sure sounds like it has huge scam potential.

Comment by Dan McKay on April 16, 2022 at 4:08pm

Bitcoin mining tries to mimic the concept of monetary theory that ties currency value to the difficult to mine resources such as gold. 

It's hard to mine solutions to complex mathematical problems (bitcoin mining) even with the use of computers. The energy consumed is the value factor behind bitcoin monetary policy.

The block chain security system inherent in bitcoin technology also uses vast energy resources.

Bitcoin mining, along with EVs and Heat pumps will put huge demands on electricity supply. 

A clash of biblical proportions is upon us.

Comment by Donna Amrita Davidge on April 16, 2022 at 3:30pm
Don’t understand it don’t want to sounds like more manipulation and exploitation based on greed
Comment by Kenneth Capron on April 16, 2022 at 12:56pm

Nope. Don't trust Bitcoin. Don't trust digital currency. I'll stick with the Egyptian Pyramids.

  

Comment by Penny Gray on April 16, 2022 at 11:55am

Wow, what a super green "mining" company, using all that energy to cool huge computer banks that are  "mining digital currency" I don't even begin to comprehend any of that.  I trust crypto as much as I trust the Cloud.  If we do get a cyberattack (or EMP) that crashes our systems, what do you do with digital currency?  I'm so primitive I favor going back to the gold standard.

Comment by Long Islander on April 16, 2022 at 10:52am

The following link appears to be for the article excerpted in this post. Personally, I don't know what to think of cryptocurrencies other than we hear more and more about them with each passing day it seems.

Bitcoin miner comes to Lewiston, has plans for western Maine

https://www.mainebiz.biz/article/bitcoin-miner-comes-to-lewiston-ha...

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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