French lawmakers are exploring Bitcoin mining as a way to utilize the nation’s surplus electricity. A proposal put forth on July 11 proposes a five-year pilot to harness excess energy, primarily from France’s nuclear grid, for Bitcoin mining. The concept is straightforward: instead of letting this unutilized energy go to waste, it can be converted into revenue. Lawmakers estimate that one gigawatt of surplus power could potentially generate $150 million annually.
Matching Power Spikes with Mining Rigs
Approximately 70% of France’s electricity is derived from nuclear energy, a consistent and dependable source, but one that does not always align with demand. At times, the grid produces excess energy, especially during low usage hours. The strategy involves deploying Bitcoin mining rigs near nuclear power plants, allowing these systems to activate or deactivate based on energy availability, thus stabilizing the grid without necessitating new infrastructure.
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Covering the Costs of Idle Reactors
Nuclear plants operate continuously even when demand is minimal, incurring operational costs. Bitcoin mining could provide a solution to recuperate some of these expenses. Reports referenced in the proposal indicate that mining could transform excess energy into direct revenue, lessening the need to frequently adjust reactor output, which can lead to increased maintenance costs.
Don’t Let the Heat Go to Waste
Mining operations generate substantial heat. The proposal suggests leveraging this heat for other industries, such as greenhouses or local heating systems, similar to initiatives already implemented in Finland. If executed, Bitcoin mining could serve as a heating alternative for surrounding communities.
Pilot Program Would Start in Brittany
Should the initiative proceed, the pilot program is likely to be launched in Brittany, with operations lasting up to five years and periodic evaluations to assess progress. France’s Council of State would supervise the program, providing results to lawmakers to help determine if this concept should be permanent in the country’s energy policy.
France Is Not Alone in This Idea
France is not the solo nation aiming to integrate Bitcoin mining into its energy framework. Belarus is investigating similar applications for excess energy, while Pakistan has allocated 2,000 megawatts for mining and AI projects. In the U.S., Texas is employing Bitcoin mining to assist with managing a grid dominated by wind and solar sources. France’s proposal aligns with the trend of viewing mining as a component of the energy system instead of an isolated activity.
Profit Potential Comes with Risk
Though this approach appears viable in theory, it faces challenges. Bitcoin prices exhibit extreme volatility, and mining remains profitable only under specific circumstances. Additionally, environmental concerns arise from operating mining rigs, even when utilizing surplus energy, as they can still exert pressure on local infrastructure. Lawmakers must also navigate regulation, zoning, and potential community resistance.
A New Role for Old Buildings and Jobs
If successful, this plan could rejuvenate abandoned industrial sites, repurposing vacant factories into operational facilities for mining rigs. This could attract technology-related jobs to regions that have seen little investment in recent years, demonstrating that France is prepared to support the digital asset sector practically.
What to Watch Next
The initial assessment will occur six months into the pilot. Lawmakers anticipate clear indicators: is the project generating profit, is it beneficial for the grid, and should it be expanded? If the outcome is favorable, France may begin to view Bitcoin mining as a long-term component of its energy strategy rather than a transient experiment.
