German telecom operator Deutsche Telekom has launched a pilot project for managing infrastructure for bitcoin mining. According to Datacenter Dynamics, the equipment is powered by excess renewable energy that could not be used due to deficiencies in power transmission networks. The company’s subsidiary, the MMS division, is working on the project together with the German banking group Bankhaus Metzler. Metis Solutions GmbH will directly manage the pilot project.
Containers with mining equipment are located on the site of Riva GmbH, a manufacturer of metal and glass facades. Solar panels are located on the territory, which will supply the infrastructure for bitcoin mining. MMS (formerly T-Systems Multimedia Solutions) will monitor the operation of the equipment, and Bankhaus Metzler will explore the possibilities of future financial services using digital assets. And the whole process has already been called “digital financial photosynthesis.”
Since 2022, Europe has been experiencing a problem with the disposal of excess renewable energy. For example, in Germany we are talking about 19 TWh, which is 4% of the country’s entire annual generation. Germany’s Federal Network Agency has warned that wind turbines are being built quite far from consumers, so the need to redistribute and deliver energy is only increasing. This includes the need to build long power lines.
Image source: American Public Power Association/unsplash.com
The situation was saved by cryptominers who offered their sites for flexible utilization of excess energy from renewable sources. MMS believes that mining capacity can play an important role in balancing supply and demand in future energy networks. Wind and solar energy producers also benefit from this, as they often face unpredictability in energy markets. At the same time, Bitcoin will be very profitable to mine in the near future; its price reached a historical maximum of $75 thousand this week.
In 2024, Deutsche Telekom made several important announcements regarding the renewable energy sector. In June, the company signed a PPA in the field of wind energy in Romania – the company’s three subsidiaries will purchase 100 GWh of “clean” electricity every year for 12 years. Previously, Deutsche Telekom signed a 150 MW PPA in Germany with Starkraft and a 100 MW PPA with EnBW. Last year, the company began building energy storage facilities with a total capacity of 300 MWh and ordered 60 MWh storage capacity from Intilion to power its data centers.