Key Takeaways
- Stranded energy is electricity that can’t be accessed due to grid limitations, low demand, or geographic isolation.
- Crypto miners are increasingly harnessing stranded energy because it is cheap, abundant, and often located in low-regulation zones, helping turn trapped energy into economic value.
- Real-world examples include wind-powered mining in Texas, hydro-powered sites in Paraguay, and geothermal setups in Iceland, all using otherwise wasted energy to support sustainable crypto operations.
- By utilizing stranded energy, crypto mining can reduce emissions, improve the viability of renewable infrastructure, and reframe mining as a solution to energy inefficiency.
Crypto mining has a reputation for high energy consumption, but what if a slight change in tactic could see it solving an energy problem, rather than causing one? Stranded energy is electricity or fuel sources that exist but cannot be utilized or sold economically. According to the International Energy Agency’s report, in 2023 alone, global energy curtailment of renewables reached 1,300 terawatt-hours. To put things into perspective, this figure is bigger than Japan’s annual electricity use.
By tapping into these otherwise resources, crypto miners are turning waste into revenue, reducing emissions while boosting Bitcoin mining sustainability. In this article, we’ll delve into stranded energy, what it is, why it exists, and why crypto miners prefer it.
What Is Stranded Energy? A Simple Definition
Stranded energy refers to power that is generated but not used due either to lack of demand or lack of infrastructure, and is therefore wasted. For example, natural gas may leak around oil rigs, but it’s not utilized. In theory, such sources can produce megawatts of electricity, but if there’s no way to utilize or transmit it, then that power literally goes to waste.
In short, it is energy without a consumer, that is, until crypto miners enter the scene.
Common Examples of Stranded Energy
The phenomenon of stranded energy occurs in a variety of scenarios for different reasons. These include:
Remote Hydropower
Mountainous areas often host hydropower stations. Yet if they’re far from cities and grid expansion is prohibitively expensive, the electricity they generate remains idle, even as turbines spin. These facilities may continue running to maintain system integrity, even when there’s no one to consume the energy. In many cases, this surplus electricity is simply dumped into the ground or dissipated as heat.
Flaring Natural Gas in Oil Fields
Oil wells usually come with a side-stream of natural gas. When pipelines and infrastructure aren’t available, producers often burn off that gas (“flare it”) to eliminate it. The energy content just escapes into the atmosphere as heat and emissions. This not only wastes valuable fuel but also contributes significantly to CO₂ and methane emissions, worsening climate change.
Surplus Solar/Wind in Off‑Grid Regions
Rural regions or small islands may have solar or wind farms, the production of which outpaces local demand. Without storage or transmission lines, that clean power either sits unused or forces curtailment. Utilities often throttle back solar inverters or idle wind turbines to prevent overloading fragile local grids. This undermines the return on investment for renewable projects and discourages further development.
Energy at Non‑Peak Hours
Even in well-networked areas, there are times, such as overnight, when grids generate more electricity than anyone uses. Unless you store it, that potential energy goes unrealized. Some power plants can’t easily shut down at night, so they keep running, producing more than needed. As a result, electricity prices may drop to zero or even go negative, highlighting the urgency for better demand management or alternative off-takers like crypto miners.
Why Stranded Energy Exists
A mix of infrastructure and economic limitations explains its persistence:
- Limitations of current power grids: Transmission networks in many regions are decades old and not designed to handle the intermittent or distributed nature of modern renewable energy. Upgrading them or building new high-voltage lines is not only capital-intensive but also bogged down by permitting, environmental reviews, and public opposition.
- Geographical isolation: Renewable energy sources like hydropower, solar, and wind are usually most effective in remote areas, mountain ranges, deserts, or offshore coastlines. These regions are far from population centers and industrial hubs that consume the most electricity. Without nearby demand or transmission lines, the energy generated in these locations is effectively trapped.
- Storage and transmission costs: While battery costs have declined over the years, storing energy at grid scale is still prohibitively expensive for most utilities. Technologies like pumped hydro or advanced lithium batteries require significant space, infrastructure, and maintenance. At the same time, transmitting electricity across long distances leads to energy losses and escalating costs, often making it uneconomical to move the stranded energy to market.
Why Crypto Miners Are Drawn to Stranded Energy
Crypto miners are increasingly drawn to stranded energy for a couple of compelling reasons:
It’s Cheap (and Often Negotiable)
Energy represents the most significant cost in crypto mining. Since stranded energy usually has no other buyers, it often comes at deep discounts. For example, a windfarm operator in Texas was reportedly selling wholesale electricity for as little as $0.01 per kilowatt-hour to nearby data centers. That rate is a fraction of commercial prices. These kinds of deals can turn unviable mining operations into profitable ones, even during market downturns.
No Competition
Stranded energy zones usually present a complete monopoly on power. With no households or factories nearby, miners can access cheap power without costly auctions or grid bidding wars. This creates a stable and predictable cost structure that is crucial for long-term planning in a volatile industry such as crypto.
Off-Grid Independence
Crypto miners can colocate equipment at, or next to, power sources. Doing so cuts out transmission fees and avoids grid bottlenecks. These “just-in-time” installations often use modular containers that plug directly into turbines or generators. This portability also allows miners to quickly relocate or scale operations in response to changing energy conditions or regulations.
Low Regulatory Considerations
In remote or industrial zones, regulations are often more relaxed. This reduces bureaucratic hurdles and means miners can deploy faster, with fewer permits or environmental reviews. Authorities may even welcome miners as partners who bring new economic activity to underutilized energy infrastructure.
How Do Crypto Miners Access Stranded Energy?
Accessing stranded energy typically requires a combination of technical, logistical, and sometimes regulatory steps. While it’s not something a typical consumer can achieve, large outfits such as crypto mining pools have the resources to tap into this wasted energy. Here are a few of the steps this might involve:
1. Identify a Source of Stranded Energy
Finding potential sources of stranded energy usually means cooperating with the big organizations who produce it. This might involve partnering with:
- Oil & gas fields: Especially those that flare natural gas.
- Remote renewable installations: Such as hydro, wind, or solar farms with excess generation.
- Industrial byproduct energy: Factories or plants that generate waste heat or excess power.
2. Deploy Mobile or Modular Mining Rigs
You might be wondering: if the energy is stranded, how can mining pools access it? The answer is some clever logistics. Rather then bringing the energy to the miners, mining operations bring their equipment to the stranded energy. This typically means using containerized mining units (e.g., shipping containers fitted with ASIC miners) which can be easily moved to remote locations where they can be powered by the stranded energy.
3. Install Conversion Equipment (if required)
Depending on the energy source, mining outfits may still need to convert the power into an appropriate format for their equipment. For example:
- Natural gas → converted into electricity via generators (internal combustion engines or turbines)
- Renewable power → usually ready-to-use, but may require battery systems or inverters to stabilize the supply
4. Set Up Internet Access & Monitoring Tools
No matter where a mining operation is based, it will alwats need internet access. This means mining pools must set up:
- Reliable satellite internet (e.g., Starlink)
- Remote monitoring software for temperature, hash rate, uptime, etc
5. Form Agreements with Energy Providers
And finally, ensuring long-term viability means mining operations must build economic partnerships with the businesses behind the stranded energy. This could take the form of:
- Leased access to the energy source
- Shared profits or emissions credits with oil/gas companies or utilities
- Building knowledge of local regulations around energy use, emissions, and crypto operations
Stranded Energy and Sustainability
In many cases, stranded energy sites are renewable, meaning mining activity adds sustainability instead of draining resources.
Mining as a Solution, Not a Problem
Consider off-grid hydro facilities in Canada or Norway. They generate clean electricity but lack demand, yet when crypto miners set up there, they convert that untouched energy into economic value. Consequently, that income helps power projects pay for equipment, local wages, and grid expansion.
Reducing Natural Gas Flaring
Natural gas flaring is a widespread issue at oil production sites, where excess gas is routinely burned off. Consequently, this releases carbon dioxide and uncombusted methane into the atmosphere.
Crypto mining companies, such as Crusoe Energy in the U.S., address these environmental issues by installing mobile data centers near oil wells. The company uses this stranded gas for electricity, powering Bitcoin mining and other computing tasks while reducing methane emissions.
Real-World Examples of Miners Using Stranded Energy
Texas Wind Farms
In West Texas, wind power often floods local grids during heavy wind events. When the grid cannot absorb all that power, this leads to an energy loss. Some miners partner with producers to install nearby rigs that ramp up when wind speeds peak, turning clean energy into BTC.
In February 2025, MARA Holdings acquired a 114 MW wind farm in Hansford County and plans to power a behind-the-meter Bitcoin mining operation with it. The company intends to run ASIC miners off last-generation rigs using renewable energy.
Another crypto mining company operating in Texas is Satoshi Energy. In 2024, it signed deals to colocate crypto and AI data centers totaling 327 MW directly at Texas wind farm sites.
Hydro Power in Paraguay or Iceland
With an annual production of 90 billion kilowatt-hours, the Itaipú Dam in Paraguay is one of the largest hydro-power producers in the world. By placing crypto mining data centers nearby, companies monetize idle power and reinforce the region’s renewable credentials.
The Bitkern Group is building a hydro-cooled Bitcoin mining facility in Paraguay that leverages abundant hydropower. The setup uses advanced liquid-to-chip cooling with power sourced directly from hydroelectric plants
Similarly, in Iceland, miners utilize hydro and geothermal energy close to dams and volcanic areas, directly transforming clean energy without stressing transmission networks.
The Enigma data center began operations around 2014, built to take advantage of Iceland’s abundant geothermal and hydroelectric power. With tens of thousands of GPU units and ASIC miners operating inside metal warehouses, it utilizes low-cost renewable electricity while Iceland’s cool ambient temperatures reduce cooling expenses.
Off-grid Flare Gas Mining in North Dakota
Companies such as Crusoe Energy station mobile mining units at wellhead and convert waste gas into Bitcoin. While Crusoe Energy began with a focus on crypto mining, it has expanded into AI cloud computing, claiming that a majority of its recent revenue now comes from data centers serving machine learning workloads.
According to the company, in 2023, it avoided 680,000 metric tons of GHG, 8,500 metric tons of methane emissions, and generated over 635,000 MWh. All by capturing gas that would otherwise be flared. Crusoe’s model highlights the complexities of combining energy waste mitigation, digital infrastructure, and carbon-intensive industries like oil and crypto.
Idle Power in Pakistan
Another real-world example of stranded energy being leveraged by miners is Pakistan, which plans to repurpose up to 2,000 megawatts of idle electricity, largely from underutilized coal power plants, for Bitcoin mining. The move will see the country turn its energy oversupply (is there any info given in the article about why there is oversupply? This would be valuable, if not no problem) into economic value. However, success of the program hinges on addressing grid limitations, regulatory clarity, and concerns from stakeholders, such as the IMF.
Closing Thoughts
Stranded energy is a hidden treasure, power produced but unused due to grid, cost, or location challenges. Crypto miners are seizing this opportunity, turning neglected, often dirty or underused energy into value. This synergy boosts mining profitability and simultaneously reduces energy waste, supporting renewable mining, lowering carbon emissions, and pushing the industry toward genuine crypto mining sustainability.
