Crypto mining is gaining dominance in the U.S., where more than a third of miners worldwide are centralized. For Bitcoin, network power demand is in the range of 10-15 gigawatts per day, which translates to roughly 0.4-0.9% of annual global use. Miners are looking to situate operations in areas where they can source low-cost electricity to maximize profit. The U.S. is an attractive market because renewable energy generation offers cryptocurrency operations access to low-cost electricity options. Crypto also offers renewables reliable load at times where network demand may not be pervasive.
Scrutinizing average generation output and daily LMP alone does not factor in the intricacies of working alongside intermittent energy sources. Additional factors such as curtailment, the reduction in generation output, causes of congestion such as overload of power, physical distribution of projects, and areas with an abundance of negative hours are essential factors when narrowing down site options. Understanding drivers of electricity pricing is key when identifying potential areas and negotiating a power purchase agreement for offtake.
VP - Commercial Product
Sarp is the VP - Commercial Product at Enverus. He has research and modeling experience in upstream &downstream oil & gas and power markets and has presented his work at various academic conferences around the world, including those organized by the SPE and the IAEE. He has also been published in the SPE Economics & Management Journal for his work on the long-term economic viability of production from unconventional liquids-rich reservoirs. Sarp’s focus on data-driven modeling and his ability to incorporate the effects of technological and market advances into analyses provides clients a thorough picture of the present and the future in their area of interest within the energy industry. Sarp holds a Master of Science in Mineral and Energy Economics from the Colorado School of Mines, a Master of Science in Petroleum Economics and Management from the Institut Francais du Petrole (IFP School), and a Bachelor of Arts in Economics from the University of Chicago.
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