What happened?
The French Parliament is promoting a 5-year Bitcoin mining experimental program that utilizes surplus electricity from nuclear and renewable energy. This not only could generate up to $150 million in annual revenue but also reduce the cost of nuclear power, achieving both energy activation and economic growth goals.
In response to the intermittency and volatility issues of renewable energy generation, lawmakers proposed using high electricity-consuming Bitcoin mining to absorb excess electricity. The residual heat from mining can also be reused for heating and agriculture, combining energy efficiency with sustainable value.
This bill has sparked controversy due to political stances and environmental concerns, but the government has expressed its willingness to study it cautiously. If successfully promoted, France will align with multiple countries in integrating cryptocurrency mining into energy transformation and industrial innovation strategies.
Creating a mining experimental base using surplus electricity
The French Parliament is actively promoting a proposal aimed at revitalizing domestic electricity resources through Bitcoin mining, creating job opportunities, and increasing fiscal revenue. This proposal states that if France can effectively utilize its considerable surplus electricity, especially from nuclear and renewable energy, it has the potential to generate up to $150 million in annual revenue, reducing fixed costs of nuclear power, and is a strategy to 'turn waste into assets.'
This draft was proposed by a member of the far-right 'National Rally' and was officially submitted to the National Assembly for review on July 11. This is a 5-year experimental program where electricity producers can use surplus electricity that is usually difficult to store for Bitcoin and other cryptocurrency mining operations. According to data provided by the French Digital Asset Development Association (ADAN), if only 1 gigawatt of surplus electricity is allocated, it can generate approximately $10 to $150 million in revenue for France each year.
Besides turning idle energy into actual revenue, it can also support the operating costs of France's large nuclear power plants, allowing surplus electricity that originally needed to be sold at low prices to become a source of profit. The draft also calls for Bitcoin mining centers to be co-located with nuclear power facilities and to be activated only when there is excess in the grid, forming a stable system for real-time adjustment without interrupting civilian electricity usage.
Not only profits, but also heating?
The lawmakers promoting the bill pointed out that the proportion of renewable energy sources such as wind and solar power is increasingly high in France's overall electricity supply, which may lead to an unstable power supply. For instance, solar power can only generate electricity during the day, and wind power depends on wind speed; sometimes there is electricity and sometimes there isn't, making it not a stable supply all day long.
During certain periods, if there is an electricity surplus and insufficient energy storage facilities, it can lead to forced low-price dumping of electricity, resulting in dual losses in energy and the economy.
The bill emphasizes: "The proportion of renewable energy in our electricity composition is increasing, but it also leads to frequent imbalances and over-supply in the grid. If not properly addressed, this will be an unacceptable waste." In this context, Bitcoin mining, due to its high electricity consumption characteristics, is viewed as one solution to convert the 'excess power' from renewable energy into tangible value.
In addition to economic benefits, the bill also points out that the heat generated from Bitcoin mining is expected to be 'reused'. Mining equipment generates a large amount of heat during high-performance calculations, and this heat can be utilized in regional heating systems, agricultural greenhouses, or industrial production. Countries like Finland have already successfully applied mining heat to agriculture and sustainable infrastructure, and French lawmakers hope to learn from these experiences to build a low-carbon economy.
Additionally, the bill emphasizes that this experiment must be conducted under strict supervision, and it is expected to be led by the State Council, requiring participating mining facilities to use high-efficiency hardware and implement carbon footprint management to comply with French environmental standards. If the trial yields good results after six months, an evaluation will be conducted to consider expanding implementation.
The future direction of the bill remains unclear
In fact, last month, a similar amendment to incorporate Bitcoin mining into energy policy was already rejected by the Parliament. Although this time it is proposed again under the name of an 'experimental program,' it still cannot avoid intense debate.
Some environmental groups hold a cautious stance, believing that this move may encourage overall electricity consumption and exacerbate environmental burdens. However, the French government is currently optimistic, stating that it will seriously study the proposal and regard it as a potential tool for enhancing grid management efficiency and nurturing emerging industries.
Moreover, as countries or regions like Texas in the U.S., Belarus, Bhutan, and Iceland gradually incorporate Bitcoin mining into energy management and economic policies, this proposal from France can be seen as following global trends and attempting to seize opportunities in the new wave of energy and technology integration.
Source: CryptoSlate, Cryptopolitan
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