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Bitcoin mining as supply-side flexibility in Irish wind energy integration

Author

Listed:
  • Sarnecki, M.
  • Burke, N.

Abstract

Ireland recorded 10.1% of available wind generation (1.3 TWh) as dispatch-down in 2024, with 2025 data showing a further rise to 11.4% as capacity additions continue to outpace transmission investment. This paper evaluates co-located Bitcoin mining as a supply-side flexibility mechanism for absorbing curtailed energy under Irish Single Electricity Market conditions. Using hourly 2024 data for a modelled 100 MW wind farm, a deterministic revenue-maximisation model is solved across six scenarios spanning 0–90 MW of mining capacity and two ASIC hardware generations. A 20 MW installation of current-generation hardware (16 J/TH) absorbs 83% of annual dispatch-down energy, raises total system revenue by 32%, and increases the effective capacity factor from 29% to 32%; scaling to 30 MW raises absorption to 93%. Legacy hardware at 98 J/TH is uneconomic under all 2024 scenarios. Investment viability depends on the magnitude of the spread between Bitcoin price and network hashrate growth rates rather than on the absolute price level.

Suggested Citation

  • Sarnecki, M. & Burke, N., 2026. "Bitcoin mining as supply-side flexibility in Irish wind energy integration," Energy Economics, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:eneeco:v:160:y:2026:i:c:s0140988326003336
    DOI: 10.1016/j.eneco.2026.109454
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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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