TEPCO Subsidiary Taps Surplus Green Energy to Mine Bitcoin
A subsidiary of Tokyo Electric Power Co. (TEPCO) is exploring an innovative solution to prevent renewable energy waste while generating additional revenue—by mining Bitcoin. Agile Energy X Inc., the subsidiary in question, is conducting trials using surplus green energy, such as solar and wind power, to power Bitcoin mining operations.
Kenji Tateiwa, president of Agile Energy X and a former executive in TEPCO’s nuclear power division, highlighted that the company's approach is relatively unique in Japan. “Success of our framework would prompt more green energy to be introduced,” Tateiwa stated. The project seeks to tackle a long-standing issue in Japan’s energy grid—oversupply of renewable energy.
CEO & President of Agile Energy X Kenji Ranjii: source
Renewable Energy Imbalance
The idea for this venture stemmed from 2018, when Kyushu Electric Power Co. had to limit renewable energy production due to supply exceeding demand. In cases like these, producers are forced to reduce their energy output to avoid grid imbalances, which could lead to power blackouts. This process, known as "output control," effectively wastes clean energy that could have been used.
Agile Energy X aims to repurpose this surplus energy for Bitcoin mining, which requires significant computational power and thus a high demand for electricity. The process, commonly criticized for its heavy energy consumption, could now serve as a complementary system to renewable energy management.
Bitcoin Mining and Green Energy
Unlike traditional financial systems, Bitcoin relies on a decentralized network where participants verify transactions through a process known as mining. Mining requires powerful computers and consumes large amounts of electricity, which can be expensive. However, Tateiwa saw an opportunity to combine this energy-intensive process with unused renewable power, thus offsetting waste.
In 2022, TEPCO established Agile Energy X as a wholly owned subsidiary to carry out this initiative. The company has since installed Bitcoin mining machines in Gunma and Tochigi prefectures, near solar farms, to test their operations during periods of energy surplus.
Addressing Power Waste and Carbon Goals
Japan's transition to green energy is key to achieving its 2050 carbon neutrality goal, with renewables expected to account for 50-60% of total power supply. However, this growth brings challenges. Solar power is not generated at night, and wind energy is highly variable. As renewable energy production scales up, the risk of power waste increases.
Agile Energy X estimates that, if green energy reaches 50% of Japan’s power supply, 240,000 gigawatt-hours of surplus energy could go unused annually. Using just 10% of this wasted energy for Bitcoin mining could potentially generate ¥360 billion ($2.5 billion) worth of Bitcoin each year, according to the company’s simulations.
Learning from U.S. Models
The initiative mirrors similar efforts in the U.S., particularly in Texas, where Bitcoin mining operations are powered by renewable energy that cannot be delivered to areas of high demand. As a result, the U.S. has become a global leader in Bitcoin mining.
Tateiwa believes that by turning surplus energy into profit through Bitcoin, more renewable energy could be introduced into the grid, thus stabilizing the financial outlook for energy producers. “Green energy producers have to operate their businesses on the assumption that part of the power they generate is wasted,” he said. However, he acknowledged that current surplus levels in Japan are insufficient to make Bitcoin mining highly profitable. He remains optimistic that profitability will rise as more renewable energy is introduced.
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