Hardware manufacturer Canaan has secured a contract to provide 4.5 megawatts (MW) of Bitcoin mining specialized integrated circuits (ASICs) aimed at enhancing Japan’s electrical grid stability.
As detailed in a Thursday release, the company will deliver Bitcoin mining ASICs with a total capacity of 4.5 MW to an electrical engineering provider for the initiative. The project will incorporate Canaan’s latest Avalon A1566HA-488T water-cooled mining ASICs for “real-time grid stabilization and energy efficiency enhancement,” stated Canaan.
This mining operation will operate continuously, employing regulated overclocking and underclocking to modulate power consumption for regional grid load stabilization. Canaan’s proprietary control technology will adapt frequency, voltage, and hashrate dynamically to align supply with demand.
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Canaan’s chairman and CEO Nangeng Zhang remarked that with machines featuring this technology, “utilities can utilize Bitcoin mining as a digital load balancer, enhancing energy sustainability and grid efficiency.” He also noted that “this endeavor builds on a similar project we supported in the Netherlands last year.”
Crypto mining for grid load balancing
Grid load balancing ensures a consistent match between electricity supply and demand, maintaining frequency and voltage within safe parameters. This approach is essential due to the significant fluctuations in consumption and renewable energy output, which can result in price spikes and outages if not managed.
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Crypto mining contributes by serving as a swift, controllable demand response. Miners can position themselves near wind or solar sources, increasing output to absorb excess power and ceasing operations in seconds when grid demand rises.
Earlier this week, the CEO of Brazilian solar energy producer Thopen stated that the company is considering entering Bitcoin mining to utilize surplus energy from Brazil’s rapidly expanding renewable sector. A report from the Digital Assets Research Institute in January also indicated that Bitcoin mining has positively influenced the Texas electrical grid, potentially saving the state up to $18 billion by removing the necessity for new gas peaker plants.
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