A microgrid is a localized, small-scale power system that can operate independently or in conjunction with the main power grid, providing people with a more sustainable and resilient source of energy. They can utilize renewable sources, energy storage batteries, and generators to produce power. It is a self-sustaining and autonomous system that generates, distributes, and controls energy to meet the needs of a specific community, building, or facility. These can be especially advantageous to rural areas, and with the advancements of IoT systems, 5G technology, AI and other innovations these are quickly becoming a hugely advantageous option for emerging infrastructures.

Going Gridless

While centralized, large scale power grids are necessary and certainly advantageous when it comes to dense populations, microgrids could be an effective way of scaling our global infrastructure from the outside in where there is little existing infrastructure. They can also be used as local safety nets for existing developed areas.

Rural countries like Africa that are rich in space, natural resources, and limited infrastructure are starting to accelerate their investments into sustainable energy and microgrid solutions, with the International Renewable Energy Agency outlining a roadmap to “double the share of renewables in the world’s energy mix within the next 15 years”.

Companies like Gridless are helping to incentivize sustainable energy infrastructure through mini grids that they are building throughout Africa. They were founded with the intention of improving Africa’s microgrid infrastructure, Bitcoin mining just happened to plug the holes that were letting water into the boat.

Microgrids As A Service

One issue that many microgrids face especially in extremely rural areas are financing, they can be hard to monetize and require some amount of cashflow to build and upkeep. That’s where Microgrids as a service come in. Microgrids as a service (MaaS) is a concept where third-party companies offer the design, installation, and management of microgrids for customers. MaaS providers offer their services on a subscription or pay-per-use basis, allowing customers to access the benefits of microgrid technology without the upfront costs or technical expertise required to build and maintain their own microgrid. MaaS can provide benefits such as energy cost savings, increased energy efficiency, and improved resilience and reliability of energy supply.

However, there’s another issue. They also suffer from optimizing their energy outflow during slow times or over long distances. With Bitcoin, you can sell the excess energy that you don’t need during the day so there is a profit being made even when no-one is using it. In fact, the Bitcoin blockchain can effectively double as a cable system for energy transformation, so that an area where it is cheap to produce energy can send it to a higher density location at virtually no cost. Because Bitcoin can operate as such a powerful energy distribution mechanism, cost and waste can be drastically reduced - all transparently on the blockchain.

Competition breeds innovation, and as more individuals are incentivized to invest in the infrastructure to run their own microgrids we are seeing some big players like Younikos, Eaton, and even Tesla along with its Microgrid Controller Software investing into the space. According to reports published in 2022 “The microgrid as a service (MaaS) market is projected to grow at a CAGR of 17.91% to reach $2,574.636 million by 2026, from $812.571 million in 2019”. As the industry becomes more competitive, microgrid infrastructure alongside renewable resource development becomes incentivized.

A Match Made In Heaven

Microgrids could potentially help Bitcoin become more decentralized by providing a local and reliable source of energy for Bitcoin miners. With microgrids, Bitcoin miners can generate their own electricity and not rely solely on the traditional utility grid, which is often centralized and controlled by a few large power companies. This would allow miners to operate in more remote areas without the need for expensive and long-distance transmission lines.

By minimizing dependence on centralized energy sources, microgrids can enhance the security and stability of the Bitcoin network by reducing the risk of a few large mining pools gaining too much control over the network. Furthermore, microgrids can help reduce the carbon footprint of Bitcoin mining by enabling the use of renewable energy sources like solar, wind, and hydro power.

On the flip side, Bitcoin can reduce microgrid energy waste by capturing excess runoff from renewable resources as well as transmitting mined energy (sats) across geographically expansive areas with no decay.

All you need to mine Bitcoin is access to energy and the internet. As more tools become available to the rest of the world, and the opportunity to build things becomes more accessible - a need for a transparent, efficient, decentralized form of energy transfer becomes increasingly more important. Bitcoin could very well be the glue that holds together energy optimization, and the freedom for people to access it.

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