How Bitcoin Mining can accelerate the transition to renewable energy and enhance the stability of the electricity grid

This thesis explores how Bitcoin mining can accelerate the transition to renewable energy and enhance electricity grid stability. Power systems with high variable renewable energy (VRE) penetration face structural coordination problems: production is abundant when the sun shines or wind blows, but demand and grid capacity are not always temporally and spatially aligned, resulting in curtailment (wasted clean energy) and operational grid stress. The proposed solution uses Bitcoin mining as a controllable, modular, and rapidly dispatchable electric load that can absorb surplus generation within seconds to minutes and release capacity when the grid needs it. Mining acts as a demand-side "shock absorber" that transforms variability into value. A mixed-integer linear programming (MILP) framework was developed that co-optimizes renewable generation (solar PV and wind), pumped-hydro storage, grid exports, and Bitcoin mining operations. The model adopts a lexicographic multi-objective structure that prioritizes energy loss minimization before profit maximization. The case study in the Provence-Alpes-Côte d'Azur region (2021-2031) demonstrates that flexible mining significantly reduces curtailment compared to a no-mining baseline, stabilizes operations when grid connection limits bind, and introduces a complementary revenue stream that improves the business case for renewables and storage. Results highlight three key contributions: (1) measurable reduction of energy waste, (2) rapid and flexible system balancing improvement, and (3) revenue diversification that strengthens clean energy investments. The approach provides a practical pathway for converting renewable energy surplus into dependable value while maintaining grid reliability and supporting deeper renewable penetration.