How to use hydroelectric energy to mine Bitcoin

Electricity from renewable energy sources accounts for over 27% of the global electricity with hydroelectric energy contributing 15.9% of that amount according to the International Energy Agency (IEA). Although hydropower is a renewable energy source like solar, wind, geothermal, and biomass, it’s more reliable than other clean energy sources making it suitable to mine crypto. This post explores how to use hydroelectric energy to mine Bitcoin including the pros and cons of hydropower.

How is hydroelectric energy generated?

Hydropower comes from water and is generated by turning a generator using a directed force from water. This can be done by curving out a dam from a river and using the high pressure water directed by a pipe or tunnel to rotate a turbine that’s connected to a generator which produces electricity. The amount of electricity produced using this method depends on the force exerted to turn the turbine and how much water runs through the system.

Another way to generate hydropower is to tap into a river’s natural flow instead of directing the water into a reservoir. 

Advantages and disadvantages of using hydroelectric energy to mine Bitcoin

Advantages of using hydroelectric energy in crypto mining

It’s renewable/green/clean – This is the biggest advantage of hydropower; it doesn’t produce or release harmful greenhouse gasses to the environment.

It is reliable – Unlike wind and solar energy, hydroelectric power plants can generate electricity even during tough weather conditions. This makes it ideal to run cryptocurrency mining rigs throughout the year.

Costs less – Hydropower is generally cheaper compared to electricity from fossil fuels once the plant is operational.

Disadvantages of mining Bitcoin with hydroelectric power

• High initial setup cost – Setting up a hydropower plant requires a high capital investment making it out of reach for small-scale cryptocurrency miners.
• Has a negative effect on the environment – Although the production of hydroelectric energy doesn’t generate greenhouse gasses, the construction of the power plant is likely to destabilize the natural habitat or even change the course of a river.
• Not available everywhere – Rivers aren’t found in all places making hydropower unavailable to Bitcoin miners living away from rivers and dams.

How to use hydroelectric energy to mine Bitcoin

Considering that your location is ideal and the finances allow you to build a hydropower plant, here are the steps to follow to turn water into electricity for your rigs:

• Determine your rigs’ energy needs – This will help evaluate the type of equipment needed hence the finances required to build a hydroelectric power plant strong enough to provide enough electrical energy.
• Connect the power plant to a transformer – Since the power from the hydroelectric energy source comes in alternating current or AC, it’s good to first send it to a transformer that helps regulate it to consumable voltage levels before connecting it to your rigs.
• Install a power distribution system – This helps with sharing the electricity to different clusters of rigs. While the system involves a lot of cabling it also provides a place to add security measures such as installing electrical cutouts to secure your crypto mining machines in case of a power surge or some other power related issues likely to harm your machines.
• Monitor the system – To avoid being caught off guard, it’s prudent to install a monitoring system or combine it with a manual inspection routine. This will help capture when the hydroelectric power plant isn’t performing at its optimum, conduct prompt maintenance procedures, and inspect whether the rigs are receiving enough power and operating as required.

Can hydroelectric energy power rigs throughout the day/year?

Hydroelectric energy can power Bitcoin mining rigs all year round. However, this will depend on the reliability of water. For example, severe drought may cause the water levels to shrink thus affecting power generation. Also, hydroelectric energy from tides and waves isn’t reliable since the two are unpredictable. The electricity demand of the mining operation will also determine whether the constructed hydroelectric power plant is able to keep up throughout the day/year.

Endless Mining is open to work with cryptocurrency miners looking to power their rigs using hydroelectric energy. The company is also ready to work with miners looking to conduct a feasibility study on whether the water bodies in their location can sustain a hydroelectric power plant and the cost of building such a plant.