Court suspends EIA-862 survey of crypto mining energy use

Wednesday, February 28, 2024

The U.S. Energy Information Administration's efforts to require cryptocurrency miners to report on their electricity use have been suspended by the U.S. District Court for the Western District of Texas, following a complaint by Texas crypto miners alleging that EIA exceeded its regulatory authority in requiring the report. 

Earlier this year, EIA announced a new, mandatory survey of crypto miners. The Form EIA-862 report would cover topics like the nature and scale of equipment installed, electricity consumption, and sources of power. EIA developed the survey and announced it as a new requirement, after requesting and receiving approval from the U.S. Office of Management and Budget for an "emergency data collection request". Emergency requests generally skip procedural steps including publication of a 60-day notice in the Federal Register and public comment. 

But a trade group and a crypto miner sued to block EIA from implementing the EIA-862 survey requirement. They argued that EIA and OMB committed procedural violations in approving the survey, including that EIA failed to establish a bona fide emergency, and that OMB authorized the emergency data collection for 189 days (longer than the 180-day maximum under the Paperwork Reduction Act). 

On February 23, a judge from the federal District Court issued a 14-day temporary restraining order enjoining EIA from implementing the survey requirement, based on a finding that the plaintiffs were "likely to succeed on the merits". The order scheduled a preliminary injunction hearing for February 27.

Regardless of the outcome of the judicial challenge to EIA's Form EIA-862 survey requirement, policymakers will likely continue to be interested in understanding energy consumption requirements for blockchain, crypto, hyper-scaling facilities, and even other data center activities.

Will ISO-NE capacity market shift from forward to prompt/seasonal?

Thursday, February 8, 2024

The operator of New England's transmission grid and wholesale electricity markets has proposed major reforms to its market for capacity. For 18 years, ISO New England has administered a "Forward Capacity Market", featuring annual auctions to procure commitments from energy resources, for a capacity commitment period three years in the future. ISO-NE has now proposed to shift to a "prompt/seasonal" model. If adopted, the reforms will change important elements of New England's electric market systems.

According to ISO-NE, its Forward Capacity Market "ensures that the New England power system will have sufficient resources to meet the future demand for electricity." The grid operator adopted a capacity market 18 years ago, to provide a revenue stream to support the development and sustained availability of enough power plants (and eventually other resources like storage and demand response). Under the present construct, ISO-NE holds annual Forward Capacity Auctions (FCA), in which resources compete to obtain a capacity supply obligation (a commitment to supply capacity) in exchange for a capacity payment determined by the auction price.

But now the grid operator has proposed to shift away from a forward market design, to a "prompt/seasonal" design:

“Prompt” means the capacity auction would take place much closer to the delivery period. As a result, the auctions would be based on more accurate information about the expected demand for electricity and resources’ ability to meet that demand during the most stressed system conditions. A prompt auction would better accommodate the development timelines of diverse resources, and reduce risk of resources securing capacity supply obligations but being unable to deliver.

The “seasonal” element involves procuring capacity in a way that better addresses the distinct reliability challenges of winter and summer, as well as variations in resource performance from season to season. Winter risks are expected to increase as weather becomes more extreme and unpredictable, and as public policies guide the region toward wider adoption of weather-dependent clean energy resources and the electrification of heating and transportation.

According to ISO-NE's proposal, the reforms would take effect beginning with the 2028/2029 capacity commitment period. Absent reform, that period would be the subject of the 19th Forward Capacity Auction (FCA 19). FCA 19 was originally scheduled for 2025, but the auction timeline was extended by the Federal Energy Regulatory Commission at ISO-NE's request to allow time for a separate, lesser reform to how it accredits capacity to resources. The grid operator says it will pursue a further FERC approval to delay the auction until 2028, so it can develop rules for the prompt/seasonal market, and hold the first prompt capacity auction in early 2028.

EIA Form EIA-862 cryptocurrency mining electricity use survey

Tuesday, February 6, 2024

A federal agency will start requiring commercial cryptocurrency miners to report on their electricity consumption. The U.S. Energy Information Administration has obtained an emergency clearance allowing it to begin collecting data on a monthly basis from February through July 2024. EIA's new Form EIA-862, the "Cryptocurrency Mining Facilities Report", is mandatory for all commercial cryptocurrency mining facilities in the U.S. Failure to file could result in criminal and civil fines and penalties that could exceed $10,000 per violation per day.

According to EIA, electricity demand from cryptocurrency mining operations in the United States has grown rapidly in recent years. While EIA doesn't have the full data it would need to evaluate crypto's share of domestic power use, EIA's "preliminary estimates suggest that annual electricity use from cryptocurrency mining probably represents from 0.6% to 2.3% of U.S. electricity consumption." 

EIA says the growth of crypto load "has drawn the attention of policymakers and grid planners concerned about its effects on cost, reliability, and emissions." EIA continues, "As cryptocurrency mining has increased in the United States, concerns have grown about the energy-intensive nature of the business and its effects on the U.S. electric power industry. Concerns expressed to EIA include strains to the electricity grid during periods of peak demand, the potential for higher electricity prices, as well as effects on energy-related carbon dioxide (CO2) emissions." For example, several U.S. Senators and Representatives sent letters to U.S. Environmental Protection Agency Administrator Michael Regan and Secretary of Energy Jennifer Granholm in July 2022 and February 2023, asking the EPA and Energy Department to "require reporting of energy use and emissions from cryptominers."

To model crypto mining's effects on the grid, EIA performed two kinds of analysis: a "top-down approach" based on the Cambridge Bitcoin Electricity Consumption Index (CBECI), and a "bottom-up approach" based on identifying specific U.S. cryptocurrency mining operations and estimating their existing electric demands. Under the top-down approach, EIA estimates electricity usage from Bitcoin mining based in the United States to range from 25 TWh to 91 TWh, amounting to 0.6% to 2.3% of the nation's 2023 electricity demand in 2023 -- comparable to three million to six million homes, or at least as much annual electricity usage as entire states like Utah or West Virginia. 

Under the bottom-up approach, EIA tried to "identify as many U.S. cryptocurrency mining facilities as possible". EIA ultimately identified a total of 137 facilities, of which EIA has location and capacity data for 52 facilities. These sites are located in 21 states, with most in Texas, Georgia, and New York. "Of the 137 facilities identified, we have identified maximum electricity use at 101 of those facilities, which we estimate to be 10,275 MW. This amount compares with an average annual power demand of about 450,000 MW in the United States, representing a share of 2.3%."


EIA notes that its surveys of power plants have revealed that some have been used for cryptocurrency mining. Considering "a group of five small U.S. power plants in Montana, New York, and Pennsylvania where cryptocurrency mining has occurred", EIA notes that these plants' generation "rose sharply beginning in 2021 when cryptocurrency miners established operations. ...  Prior to the installation of the cryptocurrency mining equipment, output from the five plants had been much lower. The previous underutilization of these power plants has attracted cryptocurrency miners to these facilities given prospects of dedicated electricity at low rates."

Going forward, EIA "will be conducting a mandatory survey focused on systematically evaluating the electricity consumption associated with cryptocurrency mining activity, which is required to better inform planning decisions and educate the public." The survey instrument is Form EIA-862, which collects data on the energy usage, and related characteristics, of commercial cryptocurrency mining facilities in the U.S. 

Form EIA-862 asks questions about cryptocurrency validation using a proof-of-stake consensus mechanism as well as cryptocurrency mining using a proof-of-work consensus mechanism. For each reportable facility, Form EIA-862 solicits information including total electricity consumption, the percentage of electricity used for cryptocurrency mining, details on the facility's cryptocurrency mining equipment, and copies of the facility's electricity bills. EIA says it will use data gathered during the survey to inform its approach going forward.

EIA has published its forms of several letters associated with the EIA-862 survey, including a Welcome letter informing entities of the need to respond and a Reminder letter. EIA also released a form of Escalation letter, which reminds respondents that the report is mandatory under federal law, that failure to comply may result in criminal fines, civil penalties, and other sanctions, that making false, fictitious or fraudulent statements is a criminal offense, and that any failure to report "may result in a civil penalty of not more than $10,633 each day for each violation".

2022 Maine power outages quantified

Thursday, January 25, 2024

Maine electricity customers experienced more frequent and longer power outages on average in 2022, compared to the national average, according to recently released federal data.

According to the U.S. Energy Information Administration, U.S. electricity consumers in 2022 experienced one or two outages, averaging about 5.5 total hours of power outage. According to EIA, major incidents like storms are most likely to cause outages with extended durations, while heavily forested states are most likely to experience a higher frequency of outages.

EIA tracks reliability and outages through two key metrics: SAIFI (which measures the frequency of service interruptions) and SAIDI (which measures duration). Some states are outliers with respect to both these metrics of electric grid reliability. The chart below, prepared by EIA, shows how various states' utilities performed in 2022 with respect to SAIDI and SAIFI. 


The average customer in Maine experienced three outages totaling over 15 hours without power in 2022. Only Alaska and Tennessee experienced more frequent outages than Maine, and only Florida and West Virginia experienced greater total durations of outages than Maine. Maine's outage duration in 2022 was roughly the same as in 2021; both were down compared to 2017, when the average Maine customer went without power for about 42 hours. According to EIA, "Power interruptions resulting from falling tree branches are common, especially because of winter ice and snowstorms that weigh down tree limbs and power lines."

Meanwhile, the District of Columbia had both the lowest frequency of service interruption and the lowest total outage duration, with an average of just 34 minutes without power in 2022. Delaware, Rhode Island, Nebraska, and Iowa also had top rankings for low outage duration.

ISO-NE 2022 generation portfolio emissions report

Tuesday, January 16, 2024

New England's electric power generation fleet emitting slightly less carbon dioxide in 2022 relative to 2021, according to the grid operator's 2022 ISO New England Electric Generator Air Emissions Report.

ISO New England operates the regional transmission grid and the wholesale market for electricity. In support of this role, ISO-NE tracks the portfolio of generation resources used in the region, as well as the resources' emission characteristics.

According to ISO-NE, New England generation emitted 33,382 kilotons of carbon dioxide in 2022, a decline of two-tenths of a percent relative to 2021. The grid operator reports an average 2022 emission rate of 643 pounds of CO2 per megawatt-hour of New England generation. 

Over longer time scales, air emissions from New England's power plants have decreased significantly. "From 2001 through 2022, CO2 emissions fell by 37%, NOx emissions fell by 79%, and SO2 emissions fell by 98%."

While carbon dioxide emissions decreased slightly again this year, sulfur dioxide (SO2) emissions increased to 3.38 kilotons, climbing over 60 percent relative to 2021. The grid operator attributes the sulfur emissions to increased reliance on fuel oil for electric generation:

More electricity came from oil-fired generators in 2022 than in the previous four years combined. At 1,845 GWh, production from these resources in 2022 was eight times higher than in 2021. Oil has a high sulfur content, so SO2 emissions rise when these resources produce more power.

The chart below shows the region's generation portfolio on a monthly basis for 2022; the red and black bars at the top of each month's column represent oil and coal use. The largest blue bars represent natural gas, while the largest orange bars represent nuclear power.

ISO-NE attributes increased use of oil for power generation to "record high natural gas prices associated with the Russia-Ukraine conflict, and thus an increase in regional reliance on oil versus natural gas." The grid operator also says that decreases in coal generation largely offset the increased oil use for purposes of CO2 and NOX emissions.




US renewable output exceeded coal in 2022

Wednesday, December 27, 2023

The U.S. generated more electricity from renewable sources than from coal last year, for the first time in history. The nation's portfolio of electric generation resources continues to shift away from coal and oil and towards renewable resources and natural gas.

The U.S. Energy Information Administration (EIA) tracks statistics on a variety of energy sources and their related infrastructure. According to EIA, the domestic electric power sector generated 4,090 million megawatthours (MWh) of electricity in 2022. The greatest share of this power (39%) came from natural gas in 2022, whose contribution has generally continued to increase over time. 

Renewable energy sources contributed the second-largest share of U.S. electricity in 2022, surpassing nuclear output (for the second time) as well as coal output (for the first time). Within the renewables sector, the wind sector grew from 133 gigawatts (GW) of installed capacity in 2021 to 141 GW in 2022, and the solar sector grew from 61 GW to 71 GW. Contributions from hydro, biomass, and geothermal remained steady.

EIA notes that the closure of the Palisades nuclear power plant in 2022 reduced national nuclear output, and cites closure of multiple coal plants as well as decreased utilization of existing coal plants.

EIA projects continued growth in the shares of the U.S. generation mix provided by wind and solar; steady levels of natural gas generation; and continued decreases in coal use for electricity.

Maine "Solar for All" program proposed for EPA funding

Tuesday, December 5, 2023

The Maine Governor's Energy Office has applied to the U.S. Environmental Protection Agency for $99.5 million to establish statewide "Solar for All" programs for Maine. If selected for funding by EPA, the programs could create new incentives for residential solar development in Maine with a focus on low-income and disadvantaged communities.

The Inflation Reduction Act allocated $7 billion to the EPA, to fund a system of competitive grants to states and other entities to establish or expand "Solar for All" programs that support deployment of solar and energy storage to benefit low-income and disadvantaged communities. Implemented as part of the Inflation Reduction Act’s Greenhouse Gas Reduction Fund (GGRF), the EPA program will award up to 60 grants to states, territories, Tribal governments, municipalities, and eligible nonprofits to create and expand low-income solar programs that provide financing and technical assistance, such as workforce development, to enable low-income and disadvantaged communities to deploy and benefit from residential solar.

According to EPA, the Solar for All program advances President Biden’s Justice40 Initiative, a program seeking to allocate 40% of the overall benefits of certain Federal investments to disadvantaged communities that are marginalized, underserved, and overburdened by pollution. EPA also cites the program as supporting the administration's goal of achieving a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050.

In Maine's proposal, the state energy office proposed three new programs:  

  • New incentives for residential rooftop solar and energy storage serving affordable multifamily housing and single-family homes of low-income households and those located in Federally-defined disadvantaged communities in Maine, to minimize financial barriers to rooftop solar benefits; 
  • New technical and financial assistance to support cooperatively-owned community solar enabling households, resident-owned communities, Tribal communities, and community-based organizations, to participate in solar energy ownership without barriers of homeownership or rooftop suitability; and 
  • A new community solar and energy storage program focused on serving low-income and disadvantaged households, utilizing competitive bidding and aligning with existing energy assistance programs to minimize costs and maximize benefits delivered directly to households through lower electricity bills while building energy resilience.

According to the energy office, full funding by EPA of Maine’s Solar for All proposal "will enable an estimated 38,000 low-income and disadvantaged households to access solar by supporting rooftop projects on owner-occupied and rental residences across the state, as well as cost-effective community solar to enable energy savings for low-income households." 

Applications by states and others were due to EPA this past fall. Announcements of awards could be made as early as March 2024, with EPA anticipating beginning to make awards in July 2024. The Inflation Reduction Act requires EPA to award all Solar for All funds by September 30, 2024.