Japan’s TEPCO Taps Surplus Renewable Energy for Bitcoin Mining, Eyeing Billions in Revenue

• Agile Energy X uses surplus solar power from Japanese farms to mine Bitcoin, reducing renewable energy wastage.
• Japan’s output control practices inspired Agile Energy X to tap unused energy for Bitcoin mining, turning waste into profit.
• Simulations show Agile Energy X could generate $2.5 billion annually by using 10% of Japan’s wasted renewable energy for Bitcoin mining.

Subsidiary of Tokyo Electric Power Company (TEPCO), Japan’s largest power utility, is venturing into Bitcoin mining. Agile Energy X, the subsidiary, is utilizing excess renewable energy that would otherwise go to waste. 

This experimental move aims to mine Bitcoin using energy from solar farms, a project initiated to capitalize on surplus power while promoting the use of renewable energy. The project was prompted by a desire to balance energy supply and demand without unnecessary wastage.

Harnessing Wasted Energy

The president of Agile Energy X, Kenji Tateiwa, explained that Japan’s “output control” practices, which sometimes result in energy curtailment, inspired this initiative. When energy production exceeds demand, particularly with renewable sources like solar power, energy production is deliberately reduced to prevent overloading the grid. 

To address this, Agile Energy X has installed mining rigs near solar farms in Gunma and Tochigi prefectures, close to Tokyo, to tap into the surplus energy. This practice ensures that unused power generated by renewable sources is put to use rather than wasted.

Potential for Large-Scale Impact

The scale of energy waste in Japan is substantial. In 2023 alone, approximately 1,920 gigawatt-hours of renewable power were subjected to output control, enough to power 450,000 homes annually. 

Agile Energy X’s simulations suggest that if 50% of Japan’s power supply came from renewable sources, about 240,000 gigawatt-hours could be wasted each year. By redirecting even 10% of this surplus energy toward Bitcoin mining, the project could generate around 360 billion yen ($2.5 billion) annually.

Bridging Energy and Cryptocurrency

Agile Energy X sees Bitcoin mining as an opportunity to generate revenue from otherwise wasted energy, offering a new way to support green energy expansion. Tateiwa believes that the success of this project could spur the adoption of more renewable energy sources. 

While the world debates the energy consumption of Bitcoin mining, Japan is exploring how to leverage surplus power to turn a challenge into an opportunity. Other countries, such as the United States, have also employed similar strategies, especially in regions with high renewable energy production like Texas.