Bitcoin miners shift away from coal as solar and wind adoption rises

Crypto compliance group MICA Crypto Alliance has projected that 70% of the energy used for Bitcoin mining will be from renewable sources by 2030. In a 19-page report, the group noted changes to the energy composition for Bitcoin mining.

According to the report Mining the Future: Bitcoin’s Carbon Footprint and the Path to 2030, the group acknowledged Bitcoin mining’s high energy demands. However, they noted that a sizable portion of energy consumption is now traceable to renewable energy, and this will keep growing

In reaching its projection, the report considered several factors that it believes will influence the percentage of Bitcoin energy consumption from renewable energy by the end of the decade. These include government policies, global energy trends, and economic incentives.

It further noted that the price of BTC will also affect energy consumption as more miners will likely come to the network as the price of BTC increases. With all these considered, it projects that renewable energy use will be between 59.28% and 74.29% of all BTC electricity usage.

However, the report expects that Bitcoin energy consumption will peak in 2030 and BTC’s impact on the environment will be reduced. It noted that even if energy consumption keeps rising, there would be more energy efficiency and large-scale decarbonization of the energy grid, which lower the environmental footprint.

Bitcoin renewable energy use is already growing

Meanwhile, renewable energy for Bitcoin mining is already growing rapidly. Between 2011 and 2024, the percentage of renewable energy used for Bitcoin mining doubled, going from 20% to 41%, with an average annual increase of 5.76%.

At the same time, the use of coal for Bitcoin mining dropped from 63% to 20% within that period, highlighting how miners are already shifting their energy sources.

It said:

“These trends underscore the growing momentum behind renewable energy adoption and the significant strides made in reducing reliance on coal as part of broader efforts towards both decarbonization and efficiency gains.”

Meanwhile, the report noted that these changes were not accidental, as several factors led to the switch to renewable energy. The reduced profitability of Bitcoin mining has forced more miners to look for more cost-effective options, one of which is renewable energy.

Additionally, China’s ban on Bitcoin mining is also a big contributor, as the country’s carbon-based sources are from that area. At the same time, there has been a global shift away from carbon-intensive sources to shift to sustainable sources on the energy grid.

A closer analysis of the renewable energy composition shows that Solar and Wind energy are growing, now accounting for 6.07% and 10.86%, respectively. A small percentage of renewable energy is carbon-negative, with 2.38 % derived from formerly vented and flared methane.

Interestingly, while the reliance on coal energy for Bitcoin mining has reduced by 8% annually over the last 15 years, it has actually increased in other industries. Data from the International Energy Agency (IEA) shows that global use of coal reached a new high in 2024 and is expected to maintain that level until  2027 as more emerging economies turn to coal for energy.

This discovery further highlights how the concerns about the impact of Bitcoin mining on energy might have been exaggerated. However, the report noted that the loud criticisms about Bitcoin’s environmental impact also contributed to industry participants switching to more sustainable options.

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