Bitcoin Mining Shifts to Renewables: Coal Usage Drops as Clean Energy Rises

Bitcoin mining has undergone a notable shift over the past decade, moving away from hydrocarbon fuels and adopting more sustainable energy practices.

One of the most significant changes has been the reduction in coal usage, which has dropped from 63% in 2011 to just 20% by 2024, according to a recent report from the MiCA Crypto Alliance and the data platform Nodiens.

This decrease in coal reliance coincides with a steady rise in renewable energy adoption within the mining sector. On average, the share of renewables in Bitcoin mining has grown by about 5.8% per year, signaling a broader move towards cleaner energy sources. The report projects that this trend will continue, with further reductions in the carbon footprint expected as the industry becomes more sustainable.

However, while Bitcoin mining has made progress, global coal consumption has moved in the opposite direction. According to the International Energy Agency (IEA), coal use worldwide hit a record high in 2024, reaching approximately 8.8 billion tons. The IEA predicts that coal demand will remain near these peak levels until at least 2027, driven by increasing consumption in developing economies such as India, Indonesia, and Vietnam.

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Looking ahead, the MiCA report presents five potential scenarios for Bitcoin’s energy use through 2030, each based on different price points. These range from a bearish $10,000 per BTC scenario to an ultra-bullish projection of $1 million per BTC. In a medium-price situation, where Bitcoin is valued at around $250,000, renewable energy could account for 59.3% to 74.3% of total mining electricity use, excluding nuclear power.

The study also anticipates that Bitcoin mining energy consumption will peak around 2030, regardless of price fluctuations. This aligns with previous projections from NYDIG, which estimated that even in a high-price scenario, Bitcoin’s energy consumption would reach about 11 times its 2020 level, accounting for roughly 0.4% of global primary energy use and 2% of global electricity generation.

Despite concerns about energy use, the report highlights how the Bitcoin mining industry is gradually embracing more eco-friendly practices, reflecting a growing awareness of environmental impacts and a commitment to sustainability in the long run.

Alexander Stefanov