Renewable energy is set to play a major role in powering Bitcoin mining operations in the coming years, with a report from MiCA Crypto Alliance and data analytics firm Nodiens predicting that over 70% of mining operations could be powered by renewable sources by 2030. This shift is driven by a move away from fossil fuels towards cleaner alternatives such as wind, solar, hydro, and energy from waste.
The report highlights the significant growth in renewable energy use in the mining sector, which stood at 41% by the end of 2024 compared to just 20% in 2011. Solar and wind energy have seen particularly impressive growth, reaching 6.07% and 10.86% of total energy consumption, respectively, by 2024. In contrast, coal-based energy in Bitcoin mining has dropped from 63% in 2011 to only 20% in 2024.
Economic incentives, changing energy trends, and evolving climate policies are driving this pivot to renewables, with further adoption expected over the next five years. Daniel Batten, a Bitcoin climate analyst, has pointed to a growing body of research supporting this trend, with 16 out of 18 peer-reviewed studies since 2023 finding that mining contributes positively to climate efforts and supports global clean energy goals.
Mining operations can also play a role in balancing electricity grids and accelerating the shift to sustainable energy, according to Batten. Some mining firms, like BTC Digital, are already integrating green energy into their operations, while countries like Ethiopia and Bhutan are making strides in this direction. In 2024, Ethiopia reportedly earned around $1 billion from Bitcoin mining by using surplus electricity generated by its Grand Renaissance Dam, a major hydropower facility.
Overall, the move towards renewable energy in Bitcoin mining is not only environmentally friendly but also economically beneficial. As more mining operations embrace green energy solutions, the industry is poised to make a positive impact on global efforts to combat climate change and promote sustainability.