Bitcoin mining instead of electricity deflagration – utilization of surplus energy and stabilization of power grids

i

Vorgangstyp

Sachstand

Unterzeichner

Veröffentlicht

28. March 2025

The city administration is examining the extent to which the use of surplus renewable energy can be implemented
so that grid stabilization can be achieved without wasting electricity.
The following points will be implemented:

  1. Analysis of the feasibility of a project to use Bitcoin mining, energy storage or
    smart grid integration as a flexible energy user in Karlsruhe.
  2. Examination of the economic potential for generating additional income from surplus
    energy for the city or local energy suppliers.
  3. Exchange with local research institutions and universities in order to create local
    collaborations and synergies.
  4. Identification of possible locations for a pilot project, taking into account existing
    energy infrastructure.
  5. Identification of funding opportunities at state, federal and EU level for innovative
    energy utilization concepts.

    Rationale
    The expansion of renewable energies is increasingly leading to fluctuations in the electricity grid and to
    situations in which surplus energy cannot be used or stored. This presents
    both an economic and a technical challenge. One innovative way of solving
    this problem is the targeted use of Bitcoin mining (or similar mining
    processes in the crypto sector) as a flexible energy user.
    A current pilot project by Deutsche Telekom MMS in cooperation with Bankhaus Metzler
    shows how surplus energy can be efficiently utilized through Bitcoin mining. The mining
    system is hosted in Backnang (Baden-Württemberg) by Metis Solutions GmbH and operated on the
    premises of RIVA Engineering GmbH, which uses its surplus solar energy for this purpose
    .
    The concept of so-called “digital monetary photosynthesis” describes the conversion
    of surplus energy into digital values through the operation of Bitcoin miners. These systems are
    particularly flexible, as they can be started up and shut down in a short time. This means that
    they can not only absorb unused energy, but also actively contribute to stabilizing the power grid
    .
    But energy storage and smart grid integration of e-vehicles already offer
    exciting possibilities for the power grid of the future.
    Karlsruhe is considered the car-sharing capital and promotes electromobility through a
    growing charging infrastructure, among other things. However, some local companies also have large fleets of vehicles. Here
    , smart grid integration similar to that in Amsterdam and Copenhagen, where
    electric vehicles are used as flexible storage (bidirectional charging = vehicles are charged at
    times of low demand and used as an energy source when demand is high). Both large
    fleets and (car-sharing) charging stations can be integrated.
    In Karlsruhe, there are many private households with photovoltaic systems that use battery storage. Tesla
    Powerwall systems are widely used and the Karlsruhe Institute of Technology (KIT) is researching
    advanced battery technologies (StoRIES research consortium, Energy Lab 2.0, Energy Storage
    beyond Lithium, CELEST & POLiS). However, power-to-heat applications could also be used to link
    to the urban district heating network in order to contribute to defossilization
    (Vattenfall is building the largest urban heat storage facility in Berlin – KoWa). In Finland, Polar Night
    Energy is putting a sand storage facility into operation for a small town’s district heating network(Polar Night
    Energy
    ).
    The city of Karlsruhe has the opportunity to take on a pioneering role in Germany and test such a
    concept in a pilot project. Through a targeted analysis, suitable
    locations and cooperation partners could be identified and funding opportunities at state, federal and EU
    level could be examined. The integration of this innovative approach into the municipal energy policy
    could not only bring economic benefits, but also actively support the energy transition in Karlsruhe
    and promote technological progress.
    We ask for a sympathetic examination of this application and look forward to a constructive
    discussion on the efficient use of renewable energies in Karlsruhe.

    Signed by:
    Friedemann Kalmbach
    Fabian Gaukel
    Adina Geißinger
    Dr. Stefan Noé