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An Econometric Analysis of Large Flexible Cryptocurrency-mining Consumers in Electricity Markets

Subir Majumder, Ignacio Aravena, Le Xie

arXiv 21 Aug 2024 · eess.SY · publishedProceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences (2025) · 7 citations (OpenAlex)

arXiv:2408.12014 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In recent years, power grids have seen a surge in large cryptocurrency mining firms, with individual consumption levels reaching 700MW. This study examines the behavior of these firms in Texas, focusing on how their consumption is influenced by cryptocurrency conversion rates, electricity prices, local weather, and other factors. We transform the skewed electricity consumption data of these firms, perform correlation analysis, and apply a seasonal autoregressive moving average model for analysis. Our findings reveal that, surprisingly, short-term mining electricity consumption is not directly correlated with cryptocurrency conversion rates. Instead, the primary influencers are the temperature and electricity prices. These firms also respond to avoid transmission and distribution network (T&D) charges - commonly referred to as four Coincident peak (4CP) charges - during the summer months. As the scale of these firms is likely to surge in future years, the developed electricity consumption model can be used to generate public, synthetic datasets to understand the overall impact on the power grid. The developed model could also lead to better pricing mechanisms to effectively use the flexibility of these resources towards improving power grid reliability.

Citation extraction

14
references
19
in-text mentions
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distinct cited
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6,592
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1ERCOT (2024) Large load interconnection status & analytics update0.73732100%
2Menati, A., Lee, K., and Xie, L (2023) Modeling and analysis of utilizing cryptocurrency mining for demand flexibility in electric energy systems: A synthetic texas gr… self0.64422100%
3RIOT Blockchain, Inc (2023) 2022 form 10-k annual report0.58531100%
4Wooldridge, J (2020) Introductory econometrics: A modern approach0.40511100%
5Krzysztofowicz, R (1997) Transformation and normalization of variates with specified distributions0.40511100%
6Box, G. E., Jenkins, G. M., Reinsel, G. C., and Ljung, G. M (2015) Time series analysis: forecasting and control0.40511100%
7Depree, N. B., Thomas, D. P., and Wong, D. S (2022) The contribution and economics of demand side response towards decarbonizing the aluminium smelting industry0.40511100%
8Du, P., Lu, N., Zhong, H., Du, P., Lu, N., and Zhong, H (2019) Demand responses in ercot0.40511100%
9ERCOT (2022) Large flexible load taskforce interconnection and planning working session0.40511100%
10Golmohamadi, H (2022) Demand-side management in industrial sector: A review of heavy industries0.40511100%

Showing the top 10 of 14 scored citations.