Toronto Hydro helps customers rack in savings

By Canada News Wire


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Toronto HydroElectric System Limited has partnered with Torontoarea The Home Depot Stores, Caplans Appliances and the City of Toronto to offer customers approximately $200 in incentives on energy efficient clothes washers.

Were proud of the collaboration from all of our partners. This is another Toronto Hydro program to help our customers choose more energy efficient products, says Chris Tyrrell, Chief Conservation Officer, Toronto Hydro.

Torontonians who are thinking of purchasing a new clothes washer should consider doing it in the next few months. Customers that purchase an ENERGY STAR clothes washer from Caplans or The Home Depot in the months of April, May and June 2010 will receive an $80 instant rebate, a $60 mailin rebate from the City of Toronto plus get an ecofriendly indoor drying rack valued at $68.

The Home Depot wants to educate consumers on how Eco Options products can be incorporated into their lifestyle to make a difference for the environment and from a dollar savings perspective. In addition to education, The Home Depot has focused on providing even more value to consumers by lowering prices on many of our over 1,900 Eco Options products which include ENERGY STAR washing machines, says Gino DiGioacchino, VP of Merchandising, The Home Depot Canada.

ENERGY STAR qualified washing machines use at least 30 per cent less electricity. They also use up to 50 per cent less water and the combined water and electricity savings can total almost $68 a year. As well, if customers use a clothes drying rack even just a quarter of the time instead of a dryer, they could save another $21 a year.

We are delighted to be partnering with Toronto Hydro and The City of Toronto in offering this program. Our customers have shown their commitment to the environment by actively seeking energy and water efficient appliances and this program will help meet those needs, says Robert Caplan, Caplans Appliances.

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Flowing with current, Frisco, Colorado wants 100% clean electricity

Frisco 100% Renewable Electricity Goal outlines decarbonization via Xcel Energy, wind, solar, and battery storage, enabling beneficial electrification and a smarter grid for 100% municipal power by 2025 and community-wide clean electricity by 2035.

 

Key Points

Frisco targets 100% renewable electricity: municipal by 2025, community by 2035, via Xcel decarbonization.

✅ Municipal operations to reach 100% renewable electricity by 2025

✅ Community-wide electricity to be 100% carbon-free by 2035

✅ Partnerships: Xcel Energy, wind, solar, storage, grid markets

 

Frisco has now set a goal of 100-per-cent renewable energy, joining communities on the road to 100% renewables across the country. But unlike some other resolutions adopted in the last decade, this one isn't purely aspirational. It's swimming with a strong current.

With the resolution adopted last week by the town council, Frisco joins 10 other Colorado towns and cities, plus Pueblo and Summit counties, a trend reflected in tracking progress on clean energy targets reports nationwide, in adopting 100-per-cent goals.

The goal is to get the municipality's electricity to 100-per-cent by 2025 and the community altogether by 2035, a timeline aligned with scenarios showing zero-emissions electricity by 2035 is possible in North America.

Decarbonizing electricity will be far easier than transportation, and transportation far easier than buildings. Many see carbon-free electricity as being crucial to both, a concept called "beneficial electrification," and point to ways to meet decarbonization goals that leverage electrified end uses.

Electricity for Frisco comes from Xcel Energy, an investor-owned utility that is making giant steps toward decarbonizing its power supply.

Xcel first announced plans to close its work-horse power plants early to take advantage of now-cheap wind and solar resources plus what will be the largest battery storage project east of the Rocky Mountains. All this will be accomplished by 2026 and will put Xcel at 55 per cent renewable generation in Colorado.

In December, a week after Frisco launched the process that produced the resolution, Xcel announced further steps, an 80 percent reduction in carbon dioxide emissions by 2030 as compared to 2050 levels. By 2050, the company vows to be 100 per cent "carbon-free" energy by 2050.

Frisco's non-binding goals were triggered by Fran Long, who is retired and living in Frisco. For eight years, though, he worked for Xcel in helping shape its response to the declining prices of renewables. In his retirement, he has also helped put together the aspirational goal adopted by Breckenridge for 100-per-cent renewables.

A task force that Long led identified a three-pronged approach. First, the city government must lead by example. The resolution calls for the town to spend $25,000 to $50,000 annually during the next several years to improve energy efficiency in its municipal facilities. Then, through an Xcel program called Renewable Connect, it can pay an added cost to allow it to say it uses 100-per-cent electricity from renewable sources.

Beyond that, Frisco wants to work with high-end businesses to encourage buying output from solar gardens or other devices that will allow them to proclaim 100-per-cent renewable energy. The task force also recommends a marketing program directed to homes and smaller businesses.

Goals of 100-per-cent renewable electricity are problematic, given why the grid isn't 100% renewable today for technical and economic reasons. Aspen Electric, which provides electricity for about two-thirds of the town, by 2015 had secured enough wind and hydro, mostly from distant locations, to allow it to proclaim 100 per cent renewables.

In fact, some of those electrons in Aspen almost certainly originate in coal or gas plants. That doesn't make Aspen's claim wrong. But the fact remains that nobody has figured out how, at least at affordable cost, to deliver 100-per-cent clean energy on a broad basis.

Xcel Energy, which supplies more than 60 per cent of electricity in Colorado, one of six states in which it operates, has a taller challenge. But it is a very different utility than it was in 2004, when it spent heavily in advertising to oppose a mandate that it would have to achieve 10 per cent of its electricity from renewable sources by 2020.

Once it lost the election, though, Xcel set out to comply. Integrating renewables proved far more easily than was feared. It has more than doubled the original mandate for 2020. Wind delivers 82 per cent of that generation, with another 18 per cent coming from community, rooftop, and utility-scale solar.

The company has become steadily more proficient at juggling different intermittent power supplies while ensuring lights and computers remain on. This is partly the result of practice but also of relatively minor technological wrinkles, such as improved weather forecasting, according to an Energy News Network story published in March.

For example, a Boulder company, Global Weather corporation, projects wind—and hence electrical production—from turbines for 10 days ahead. It updates its forecasts every 15 minutes.

Forecasts have become so good, said John T. Welch, director of power operations for Xcel in Colorado, that the utility uses 95 per cent to 98 per cent of the electricity generated by turbines. This has allowed the company to use its coal and natural gas plants less.M

Moreover, prices of wind and then solar declined slowly at first and then dramatically.

Xcel is now comfortable that existing technology will allow it to push from 55 per cent renewables in 2026 to an 80 per cent carbon reduction goal by 2030.

But when announcing their goal of emissions-free energy by mid-century in December, the company's Minneapolis-based chief executive, Ben Fowke, and Alice Jackson, the chief executive of the company's Colorado subsidiary, freely admitted they had no idea how they will achieve it. "I have a lot of confidence they will be developed," Fowke said of new technologies.

Everything is on the table, they said, including nuclear. But also including fossil fuels, if the carbon dioxide can be sequestered. So far, such technology has proven prohibitively expensive despite billions of dollars in federal support for research and deployment. They suggested it might involve new technology.

Xcel's Welch told Energy News Network that he believes solar must play a larger role, and he believes solar forecasting must improve.

Storage technology must also improve as batteries are transforming solar economics across markets. Batteries, such as produced by Tesla at its Gigafactory near Reno, can store electricity for hours, maybe even a few days. But batteries that can store large amounts of electricity for months will be needed in Colorado. Wind is plentiful in spring but not so much in summer, when air conditioners crank up.

Increased sharing of cheap renewable generation among utilities will also allow deeper penetration of carbon-free energy, a dynamic consistent with studies finding wind and solar could meet 80% of demand with improved transmission. Western US states and Canadian provinces are all on one grid, but the different parts are Balkanized. In other words, California is largely its own energy balancing authority, ensuring electricity supplies match electricity demands. Ditto for Colorado. The Pacific Northwest has its own balancing authority.

If they were all orchestrated as one in an expanded energy market across the West, however, electricity supplies and demands could more easily be matched. California's surplus of solar on summer afternoons, for example, might be moved to Colorado.

Colorado legislators in early May adopted a bill that requires the state's Public Utilities Commission to begin study by late this year of an energy imbalance market or regional transmission organization.

 

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How the dirtiest power station in western Europe switched to renewable energy

Drax Biomass Conversion accelerates renewable energy by replacing coal with wood pellets, sustainable forestry feedstock, and piloting carbon capture and storage, supporting the UK grid, emissions cuts, and a net-zero pathway.

 

Key Points

Drax Biomass Conversion is Drax's shift from coal to biomass with CCS pilots to cut emissions and aid UK's net-zero.

✅ Coal units converted to biomass wood pellets

✅ Sourced from sustainable forestry residues

✅ CCS pilots target lifecycle emissions cuts

 

A power station that used to be the biggest polluter in western Europe has made a near-complete switch to renewable energy, mirroring broader shifts as Denmark's largest energy company plans to end coal by 2023.

The Drax Power Station in Yorkshire, England, used to spew out millions of tons of carbon dioxide a year by burning coal. But over the past eight years, it has overhauled its operations by converting four of its six coal-fired units to biomass. The plant's owners say it now generates 15% of the country's renewable power, as Britain recently went a full week without coal power for the first time.

The change means that just 6% of the utility's power now comes from coal, as the wider UK coal share hits record lows across the national electricity system. The ultimate goal is to stop using coal altogether.

"We've probably reduced our emissions more than any other utility in the world by transforming the way we generate power," Will Gardner, CEO of the Drax Group, told CNN Business.

Subsidies have helped finance the switch to biomass, which consists of plant and agricultural matter and is viewed as a promising substitute for coal, and utilities such as Nova Scotia Power are also increasing biomass use. Last year, Drax received £789 million ($1 billion) in government support.

 

Is biomass good for the environment?

While scientists disagree over the extent to which biomass as a fuel is environmentally friendly, and some environmentalists urge reducing biomass use amid concerns about lifecycle emissions, Drax highlights that its supplies come from from sustainably managed and growing forests.

Most of the biomass used by Drax consists of low-grade wood, sawmill residue and trees with little commercial value from the United States. The material is compressed into sawdust pellets.

Gardner says that by purchasing bits of wood not used for construction or furniture, Drax makes it more financially viable for forests to be replanted. And planting new trees helps offset biomass emissions.

Forests "absorb carbon as they're growing, once they reach maturity, they stop absorbing carbon," said Raphael Slade, a senior research fellow at Imperial College London.

But John Sterman, a professor at MIT's Sloan School of Management, says that in the short term burning wood pellets adds more carbon to the atmosphere than burning coal.

That carbon can be absorbed by new trees, but Sterman says the process can take decades.

"If you're looking at five years, [biomass is] not very good ... If you're looking at a century-long time scale, which is the sort of time scale that many foresters plan, then [biomass] can be a lot more beneficial," says Slade.

 

Carbon capture

Enter carbon capture and storage technology, which seeks to prevent CO2 emissions from entering the atmosphere and has been touted as a possible solution to the climate crisis.

Drax, for example, is developing a system to capture the carbon it produces from burning biomass. But that could be 10 years away.

 

The Coal King is racing to avoid bankruptcy

The power station is currently capturing just 1 metric ton of CO2 emissions per day. Gardner says it hopes to increase this to 10,000 metric tons per day by the mid to late 2020s.

"The technology works but scaling it up and rolling it out, and financing it, are going to be significant challenges," says Slade.

The Intergovernmental Panel on Climate Change shares this view. The group said in a 2018 report that while the potential for CO2 capture and storage was considerable, its importance in the fight against climate change would depend on financial incentives for deployment, and whether the risks of storage could be successfully managed. These include a potential CO2 pipeline break.

In the United Kingdom, the government believes that carbon capture and storage will be crucial to reaching its goal of achieving net-zero greenhouse gas emissions by 2050, even as low-carbon generation stalled in 2019 according to industry analysis.

It has committed to consulting on a market-based industrial carbon capture framework and in June awarded £26 million ($33 million) in funding for nine carbon capture, usage and storage projects, amid record coal-free generation on the British grid.

 

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Minnesota bill mandating 100% carbon-free electricity by 2040

Minnesota 100% Carbon-Free Electricity advances renewable energy: wind, solar, hydropower, hydrogen, biogas from landfill gas and anaerobic digestion; excludes incineration in environmental justice areas; uses renewable energy credits and streamlined permitting.

 

Key Points

Minnesota's mandate requires utilities to deliver 100% carbon-free power by 2040 with targets and EJ safeguards.

✅ Utilities must hit 90% carbon-free by 2035; 100% by 2040.

✅ Incineration in EJ areas excluded; biogas, wind, solar allowed.

✅ Compliance via renewable credits; streamlined permitting.

 

Minnesota Gov. Tim Walz, D, is expected to soon sign a bill establishing a clean electricity standard requiring utilities in the state to provide electricity from 100% carbon-free sources by 2040. The bill also calls for utilities to generate at least 55% of their electricity from renewable energy sources by 2035, a trajectory similar to New Mexico's clean electricity push underway this decade.

Electricity generated from landfill gas and anaerobic digestion are named as approved renewable energy technologies, but electricity generated from incinerators operating in “environmental justice areas”, reflecting concerns about renewable facilities violating pollution rules in some states, will not be counted toward the goal. Wind, solar, and certain hydropower and hydrogen energy sources are also considered renewable in the bill. 

The bill defines EJ areas as places where at least 40% of residents are not white, 35% of households have an income that’s below 200% of the federal poverty line, and 40% or more of residents over age 5 have “limited” English proficiency. Areas the U.S. state defines as “Indian country” are also considered EJ areas.

Some of the state’s largest electric utilities, like Xcel Energy and Minnesota Power, have already pledged to move to carbon-free energy, and utilities such as Alliant Energy have outlined carbon-neutral plans in the region, but this bill speeds up that goal by 10 years, Minnesota Public Radio reported. The bill calls for public utilities operating in the state to be 80% carbon-free and other electric utilities to be 60% carbon-free by 2030. All utilities must be 90% carbon-free by 2035 before ultimately hitting the 100% mark in 2040, according to the bill.  

The bill gives utilities some leniency if they demonstrate to state regulators that they can’t offer affordable power while working toward the benchmarks, acknowledging reliability challenges seen in places like California's grid during the clean energy transition. It also allows utilities to buy renewable energy credits to meet the standard instead of generating the energy themselves. 

Patrick Serfass, executive director of the American Biogas Council, said the bill will incentivize more biogas-related electricity projects, “which means the recycling of more organic material and more renewable electricity in the state. Those are all good things,” he said. ABC sees significant potential for biogas production in Minnesota, though the federal climate law has delivered mixed results for accelerating clean power deployment.

The bill also aims to streamline the permitting process for new energy projects in the state, even as some states consider limits on clean energy that would constrain utility use, and calls for higher minimum wage requirements for workers.

 

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Neste increases the use of wind power at its Finnish production sites to nearly 30%

Neste wind power agreement boosts renewable electricity in Finland, partnering with Ilmatar and Fortum to supply Porvoo and Naantali sites, cutting Scope 2 emissions and advancing a 2035 carbon-neutral production target via long-term PPAs.

 

Key Points

A PPA to source wind power for sites, cutting Scope 2 emissions and supporting Neste's 2035 carbon-neutral goal.

✅ 10-year PPA with Ilmatar; + Fortum boosts renewable electricity share.

✅ Supplies ~7% of Porvoo-Naantali electricity; capacity >20 MW.

✅ Cuts Scope 2 emissions by ~55 kt CO2e per year toward 2035 neutrality.

 

Neste is committed to reaching carbon neutral production by 2035, mirroring efforts such as Olympus 100% renewable electricity commitments across industry.

As part of this effort, the company is increasing the use of renewable electricity at its production sites in Finland, reflecting trends such as Ireland's green electricity targets across Europe, and has signed a wind power agreement with Ilmatar, a wind power company. The agreement has been made together with Borealis, Neste's long-term partner in the Kilpilahti area in Porvoo, Finland.

As a result of the agreement with Ilmatar, as well as that signed with Fortum at the end of 2019, and in line with global growth such as Enel's 450 MW wind project in the U.S., nearly 30% of the energy used at Neste's production sites in Porvoo and Naantali will be renewable wind power in 2022.

'Neste's purpose is to create a healthier planet for our children. Our two climate commitments play an important role in living up to this ambition, and one of them is to reach carbon neutral production by 2035. It is an enormous challenge and requires several concrete measures and investments, including innovations like offshore green hydrogen initiatives. Wind power, including advances like UK offshore wind projects, is one of the over 70 measures we have identified to reduce our production's greenhouse gas emissions,' Neste's President and CEO Peter Vanacker says.

With the ten year contract, Neste is committed to purchase about one-third of the production of Ilmatar's two wind farms, reflecting broader market moves such as BC Hydro wind deals in Canada. The total capacity of the agreement is more than 20 MW, and the energy produced will correspond to around 7% of the electricity consumption at Neste's sites in Porvoo and Naantali. The wind power deliveries are expected to begin in 2022.

The two wind power agreements help Neste to reduce the indirect greenhouse gas emissions (Scope 2 emissions defined by the Greenhouse Gas Protocol) of electricity purchases at its Finnish production sites, a trend mirrored by Dutch green electricity growth across Europe, annually by approximately 55 kilotons. 55 kt/a CO2e equals annual carbon footprint of more than 8,500 EU citizens.

 

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Utilities commission changes community choice exit fees; what happens now in San Diego?

CPUC Exit Fee Increase for CCAs adjusts the PCIA, affecting utilities, San Diego ratepayers, renewable energy procurement, customer equity, and cost allocation, while providing regulatory certainty for Community Choice Aggregation programs and clean energy goals.

 

Key Points

A CPUC-approved change raising PCIA exit fees paid by CCAs to utilities, balancing cost shifts and customer equity.

✅ PCIA rises from about 2.5c to roughly 4.25c per kWh in San Diego

✅ Aims to reduce cost shifts and protect non-CCA customers

✅ Offers regulatory certainty for CCA launches and clean energy goals

 

The California Public Utilities Commission approved an increase on the exit fees charged to customers who take part in Community Choice Aggregation -- government-run alternatives to traditional utilities like San Diego Gas & Electric.

After reviewing two competing exit fee proposals, all five commissioners voted Thursday in favor of an adjustment that many CCA advocates predicted could hamper the growth of the community choice movement.

But minutes after the vote was announced, one of the leading voices in favor of the city San Diego establishing its own CCA said the decision was good news because it provides some regulatory certainty.

"For us in San Diego, it's a green light to move forward with community choice," said Nicole Capretz, executive director of the Climate Action Campaign. "For us, it's let's go, let's launch and let's give families a choice. We no longer have to wait."

Under the CCA model, utilities still maintain transmission and distribution lines (poles and wires, etc.) and handle customer billing. But officials in a given local government entity make the final decisions about what kind of power sources are purchased.

Once a CCA is formed, its customers must pay an exit fee -- called a Power Charge Indifference Adjustment -- to the legacy utility serving that particular region. The fee is included in customers' monthly bills.

The fee is required to offset the costs of the investments utilities made over the years for things like natural gas power plants, renewable energy facilities and other infrastructure.

Utilities argue if the exit fee is set too low, it does not fairly compensate them for their investments; if it's too high, CCAs complain it reduces the financial incentive for their potential customers.

The Public Utilities Commission chose to adopt a proposal that some said was more favorable to utilities, leading to complaints from CCA boosters.

"We see this will really throw sand in the gears in our ability to do things that can move us toward (climate change) goals," Jim Parks, staff member of Valley Clean Energy, a CCA based in Davis, said before the vote.

Commissioner Carla Peterman, who authored the proposal that passed, said she supports CCAs but stressed the commission has a "legal obligation" to make sure increased costs are not shouldered by "customers who do not, or cannot, join a CCA. Today's proposal ensures a more level playing field between customers."

As for what the vote means for the exit fee in San Diego, Peterman's office earlier in the week estimated the charge would rise from 2.5 cents a kilowatt-hour to about 4.25 cents.

The Clear the Air Coaltion, a San Diego County group critical of CCAs, said the newly established exit fee -- which goes into effect starting next year -- is "a step in the direction."

But the group, which includes the San Diego Regional Chamber of Commerce, the San Diego County Taxpayers Association and lobbyists for Sempra Energy (the parent company of SDG&E), repeated concerns it has brought up before.

"If the city of San Diego decides to get into the energy business this decision means ratepayers in National City, Chula Vista, Carlsbad, Imperial Beach, La Mesa, El Cajon and all other neighboring communities would see higher energy bills, and San Diego taxpayers would be faced with mounting debt," coalition spokesman Tony Manolatos said in an email.

CCA supporters say community choice is critical in ensuring San Diego meets the pledge made by Mayor Kevin Faulconer to adopt the city's Climate Action Plan, mandating 100 percent of the city's electricity needs must come from renewable sources by 2035.

Now attention turns to Faulconer, who promised to make a decision on bringing a CCA proposal to the San Diego City Council only after the utilities commission made its decision.

A Faulconer spokesman said Thursday afternoon that the vote "provides the clarity we've been waiting for to move forward" but did not offer a specific time table.

"We're on schedule to reach Mayor Faulconer's goal of choosing a pathway that achieves our renewable energy goals while also protecting ratepayers, and the mayor looks forward to making his recommendation in the next few weeks," said Craig Gustafson, a Faulconer spokesman, in an email.

A feasibility study released last year predicted a CCA in San Diego has the potential to deliver cheaper rates over time than SDG&E's current service, while providing as much as 50 percent renewable energy by 2023 and 80 percent by 2027.

"The city has already figured out we are still capable of launching a program, having competitive, affordable rates and finally offering families a choice as to who their energy provider is," said Capretz, who helped draft an initial blueprint of the climate plan as a city staffer.

SDG&E has come to the city with a counterproposal that offers 100 percent renewables by 2035.

Thus far, the utility has produced a rough outline for a "tariff" program that would charge ratepayers the cost of delivering more clean sources of energy over time.

Some council members have expressed frustration more specifics have not been sketched out.

SDG&E officials said they will take the new exit fee into account as they go forward with their counterproposal to the city council.

Speaking in general about the utility commission's decision, SDG&E spokeswoman Helen Gao called it "a victory for our customers, as it minimizes the cost shifts that they have been burdened with under the existing fee formula.

"As commissioners noted in rendering their decision, reforming the (exit fee) addresses a customer-to-customer equity issue and has nothing to do with increasing profits for investor-owned utilities," Gao said in an email.

 

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Iceland Cryptocurrency mining uses so much energy, electricity may run out

Iceland Bitcoin Mining Energy Shortage highlights surging cryptocurrency and blockchain data center electricity demand, as hydroelectric and geothermal power strain to cool servers, stabilize grid, and meet rapid mining farm growth amid Arctic-friendly conditions.

 

Key Points

Crypto mining data centers in Iceland are outpacing renewable power, straining the grid and exceeding residential electricity demand.

✅ Hydroelectric and geothermal capacity nearing allocation limits

✅ Cooling-friendly climate draws energy-hungry mining farms

✅ Grid planning and regulation lag rapid data center growth

 

The value of bitcoin may have stumbled in recent months, but in Iceland it has known only one direction so far: upward. The stunning success of cryptocurrencies around the globe has had a more unexpected repercussion on the island of 340,000 people: It could soon result in an energy shortage in the middle of the Atlantic Ocean.

As Iceland has become one of the world's prime locations for energy-hungry cryptocurrency servers — something analysts describe as a 21st-century gold-rush equivalent — the industry’s electricity demands have skyrocketed, too. For the first time, they now exceed Icelanders’ own private energy consumption, and energy producers fear that they won’t be able to keep up with rising demand if Iceland continues to attract new companies bidding on the success of cryptocurrencies, a concern echoed by policy moves like Russia's proposed mining ban amid electricity deficits.

Companies have flooded Iceland with requests to open new data centers to “mine” cryptocurrencies in recent months, even as concerns mount that the country may have to slow down investments amid an increasingly stretched electricity generation capacity, a dynamic seen in BC Hydro's suspension of new crypto connections in Canada.

“There was a lot of talk about data centers in Iceland about five years ago, but it was a slow start,” Johann Snorri Sigurbergsson, a spokesman for Icelandic energy producer HS Orka, told The Washington Post. “But six months ago, interest suddenly began to spike. And over the last three months, we have received about one call per day from foreign companies interested in setting up projects here.”

“If all these projects are realized, we won’t have enough energy for it,” Sigurbergsson said.

Every cryptocurrency in the world relies on a “blockchain” platform, which is needed to trade with digital currencies. Tracking and verifying a transaction on such a platform is like solving a puzzle because networks are often decentralized, and there is no single authority in charge of monitoring payments. As a result, a transaction involves an immense number of mathematical calculations, which in turn occupy vast computer server capacity. And that requires a lot of electricity, as analyses of bitcoin's energy use indicate worldwide.

The bitcoin rush may have come as a surprise to locals in sleepy Icelandic towns that are suddenly bustling with cryptocurrency technicians, but there’s a simple explanation. “The economics of bitcoin mining mean that most miners need access to reliable and very cheap power on the order of 2 or 3 cents per kilowatt hour. As a result, a lot are located near sources of hydro power, where it’s cheap,” Sam Hartnett, an associate at the nonprofit energy research and consulting group Rocky Mountain Institute, told the Washington Post.

Top financial regulators briefed a Senate panel on Feb. 6 about their work with cryptocurrencies like Bitcoin, and the risks to potential investors. (Reuters)

Located in the middle of the Atlantic Ocean and famous for its hot springs and mighty rivers, Iceland produces about 80 percent of its energy in hydroelectric power stations, compared with about 6 percent in the United States, and innovations such as underwater kites illustrate novel ways to harness marine energy. That and the cold climate make it a perfect location for new data-mining centers filled with servers in danger of overheating.

Those conditions have attracted scores of foreign companies to the remote location, including Germany's Genesis Mining, which moved to Iceland about three years ago. More have followed suit since then or are in the process of moving. 

While some analysts are already sensing a possible new revenue source for the country that is so far mostly known abroad as a tourist haven and low-budget airline hub, others are more concerned by a phenomenon that has so far mostly alarmed analysts because of its possible financial unsustainability, alongside issues such as clean energy's dirty secret that complicate the picture. Some predictions have concluded that cryptocurrency computer operations may account for “all of the world’s energy by 2020” or may already account for the equivalent of Denmark's energy needs. Those predictions are probably too alarmist, though. 

Most analysts agree that the real energy-consumption figure is likely smaller, and several experts recently told the Washington Post that bitcoin — currently the world's biggest cryptocurrency — used no more than 0.14 percent of the world’s generated electricity, as of last December. Even though global consumption may not be as significant as some have claimed, it still presents a worrisome drain for a tiny country such as Iceland, where consumption suddenly began to spike with almost no warning — and continues to grow fast.

Some networks are considering or have already pushed through changes to their protocols, designed to reduce energy use. But implementing such changes for the leading currency, bitcoin, won't be as easy because it is inherently decentralized. The companies that provide the vast amounts of computing power needed for these transactions earn a small share, comparable to a processing fee or a reward.

They are the source of the Icelandic bitcoin miners’ income — a revenue source that many Icelanders are still not quite sure what to make of, especially if the lights start flickering.

 

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