Hydropower replaces natural gas as largest energy source for Bitcoin mining

Bitcoin mining consumes increasing amounts of electricity, but at the same time its energy mix is becoming greener. New preliminary data from the Cambridge Centre for Alternative Finance shows that hydropower is displacing natural gas as the largest energy source for the mining industry. That is striking news, because the total electricity consumption of the network is simultaneously increasing significantly.

Bitcoin is available at OKX and Bybit.

Electricity consumption rises by 38%

According to Alexander Neumueller of the Cambridge Centre for Alternative Finance, the Bitcoin network now consumes about 190 terawatt-hours (TWh) of electricity on an annual basis. In June 2024, that figure was 138 TWh, representing an increase of 38%. Neumueller shared these figures during a presentation at the Energy Investors Forum in Dallas, reports The Energy Mag.

Despite this significant increase in electricity consumption, CO₂ emissions are rising at a much slower pace relatively. Estimated emissions increase by 20%, from roughly 40 million tonnes of CO₂ equivalent to around 48 million tonnes. This difference can be explained by the mining industry increasingly drawing on cleaner energy sources.

Green energy gains ground in the mining sector

The share of low-carbon energy in Bitcoin mining’s total energy mix climbs from 52.4% to 59.4%. This shift is largely attributable to hydropower, which now passes natural gas for the first time as the largest individual energy source. That is a significant change for an industry that has been under pressure for years due to its ecological footprint.

The development fits into a broader trend in which miners worldwide are searching for cheap and sustainable electricity. Hydropower often offers an attractive combination of low costs and limited emissions. Whether this trend continues depends in part on the location choices of large mining companies and the further growth of the network. The Bitcoin price currently stands at $64K, a rise of 0.7% in the past 24 hours.