Photo by Reuters used for illustrative purposes
Bitcoin miners in the UAE could significantly reduce electricity costs by balancing demand during off-peak hours and winter months, according to an industry expert. This approach would enhance the efficiency of power generation systems, ultimately lowering electricity prices for consumers.
Jaran Mellerud, co-founder of Hashlabs Mining, suggested that the government could collaborate with bitcoin miners to operate their systems during periods of low electricity demand. “The government can establish a system with bitcoin miners to ensure they run their mining operations during off-peak hours or winter months,” he explained. “This ensures that the systems operate at maximum efficiency, making electricity production more cost-effective and cheaper for consumers.”
Mellerud made these observations at the Bitcoin MENA conference in Abu Dhabi on Monday, a two-day event that brings together the global Bitcoin community to explore opportunities, challenges, and innovations in the sector.
Bitcoin mining is a highly energy-intensive process that consumes vast amounts of electricity. Official estimates indicate that mining requires approximately 91 terawatt-hours (TWh) of electricity annually—more than the consumption of several countries worldwide. However, Mellerud emphasized that bitcoin mining offers a unique flexibility that other energy-consuming industries lack. “Unlike factories or energy plants, mining operations can be halted almost instantaneously,” he noted. “If energy consumption surges, miners can pause their activities and resume when demand is lower.”
Mellerud referenced the success of similar systems in Texas, where miners and government agencies have collaborated to create an efficient energy marketplace. “They have implemented a system that functions almost like an electricity marketplace,” he said. “Texas has developed a system that benefits both miners and the government. The UAE, with its high temperatures and dusty conditions, could also benefit from such an approach.”
Based on his extensive research into the region’s crypto mining landscape, Mellerud believes the GCC has substantial potential to lead the global bitcoin mining industry. “If GCC countries allocated just 2 percent of their electricity generation to mining, they could account for 8.4 percent of the global hashrate and mine around 16,000 BTC annually,” he stated.
With the UAE’s large nuclear power plant and abundant solar energy resources, Mellerud envisions the country becoming a global leader in cryptocurrency mining, positioning itself as a key player in the industry.
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