Deutsche Telekom to Start Mining Bitcoin for Europe’s Sustainable Energy
Deutsche Telekom Bitcoin mining launched a new pilot project on November 4th, to mine Bitcoin using surplus renewable energy that would otherwise go to waste due to inadequate grid infrastructure, according to Deutsche Telekom blogpost.
Deutsche Telekom’s IT services subsidiary, Telekom Systems Multimedia Solutions (MMS), has partnered with German banking institution, Bankhaus Metzeler, to launch the pilot project for Bitcoin crypto mining.
Duetsche Telekom has been at the front in the renewable sector with its standing announcements for the past year, and the crypto hardware for Bitcoin mining is its latest.
The pilot will happen at the Riva GmbH Engineering in Backnang premise in Germany – a manufacturer of metal and glass facades. The Bitcoin miners will be powered by will solar panels installed on-site, using otherwise unused solar generation to support the Deutsche Telekom Bitcoin mining.
From Surplus Energy to Digital Value
Deutsche Telekom Bitcoin mining initiative was found as a solution for the concerning issue of the European energy grid. The insufficient transmission infrastructure that carries power from renewable generation sites to high demand areas resulted in the curtailment of renewable energy.
In Germany, 19 TWh (terawatt hours) of renewable energy were curtailed in 2022, resulting for about 4% of the country’s total electricity generation.
According to Deutsche Telekom, crypto Bitcoin mining could offer a solution to this problem by providing a flexible load that can absorb excess energy, especially during times of grid imbalance.
“Together with Bankhaus Metzler and Riva Engineering, we are testing the regulatory effects of Bitcoin miners on the energy grid,” said Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at Deutsche Telekom MMS, adding that “Surplus energy is converted into digital values through the miners. We call this digital monetary photosynthesis.”
Looking back, Bitcoin mining is often criticized for its high energy consumption, but here comes the initiative to prove that miners can play an important role in balancing energy supply and demand.
With a flexible load that can be quickly adjusted based on grid needs, Bitcoin miners can help smooth out fluctuations caused by irregular renewable energy sources like wind and solar.
Bankhaus Metzler – Germany’s oldest bank – put on efforts in the pilot project to find new financial services opportunities in the digital asset sector. The bank plans to study the regulatory and financial potential of Bitcoin wallet crypto mining as a service in the broader context of digital assets and decentralized finance.
In June 2024, the company signed a major power purchase agreement (PPA) for wind energy in Romania, securing 100 GWh of clean power annually for 12 years. The company has also signed PPAs for wind power in Germany, including a 150 MW agreement with Statkraft and a 100 MW deal with EnBW.
Final Thoughts
With the latest events, the price of Bitcoin has risen to reach $75,000 per coin, therefore the potential profit for Deutsche Telekom Bitcoin mining is growing. This, in turn, increases the motivation for investing in renewable energy sources that would otherwise go unused.
The German telco, alongside its partners are setting ambitious goals to push both the energy and digital assets sectors. If they manage to succeed, Deutsche Telekom’s initiative could fast-track a more sustainable energy grid within the EU.
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