Bitcoin Mining to Use 70% Renewable Energy by 2030

Bitcoin mining is poised to undergo a substantial transformation towards sustainability, with projections suggesting that renewable energy sources could supply over 70% of the energy needed for Bitcoin mining operations by 2030. This shift is primarily driven by a reduction in coal usage and an increase in investment in solar and wind power, as detailed in a report by MiCA Crypto Alliance and data analytics firm Nodiens.

The report highlights that the mining sector's reliance on renewable energy has significantly increased, rising from 20% in 2011 to 41% by the end of 2024. This transition is characterized by a diversification in the types of renewable energy utilized, with solar and wind energy accounting for 6.07% and 10.86% of total energy consumption, respectively, by 2024. In contrast, the use of coal-based energy in Bitcoin mining has decreased dramatically, from 63% in 2011 to just 20% in 2024.

Economic incentives, evolving energy trends, and climate policies are the key factors driving this industry-wide shift towards renewables. These elements are expected to further accelerate the adoption of renewable energy over the next five years. Bitcoin climate analyst Daniel Batten supports this trend, citing 16 out of 18 peer-reviewed studies published since 2023 that indicate mining contributes positively to climate efforts and supports global clean energy goals. Batten also notes that mining operations can help balance electricity grids and expedite the transition to sustainable energy.

Several mining firms are leading this green transition. BTC Digital, for example, has been an early adopter of integrating green energy into its operations. Additionally, countries are leveraging their hydropower capabilities to earn significant revenue from Bitcoin mining. For instance, Ethiopia reportedly earned around $1 billion in 2024 by utilizing surplus electricity generated by its Grand Renaissance Dam.

The shift towards renewable energy in Bitcoin mining is not only environmentally beneficial but also economically viable. As the industry continues to evolve, the integration of green energy sources is likely to become a standard practice, ensuring a more sustainable future for Bitcoin mining. This transition aligns with broader global efforts to reduce carbon emissions and promote clean energy, positioning Bitcoin mining as a potential contributor to a greener economy.