Direct contract with power suppliers will help miners save cost

[Accardo]

Electricity bills are price intensive for bitcoin miners, but having a contract with the suppliers probably will secure more coins in expenses. Power suppliers vary, and the best tariff I'd recommend for miners is the fixed rate tariff that permits paying a similar amount of money for a specific period, regardless of the fluctuation in energy prices. Hence, talking to the company to purchase energy ahead of time for a desired period, knowing how much kwh that'll be consumed, is better than working with middlemen that add up money to electricity bills, which ends up affecting the miner's budgets.

I found a site, though it operates in the Uk, that helps with evaluating electricity prices, and finding of cheap power providers to collaborate and work with on a desired plan, and in the list was Scottish power with a three year plan and a charge of 23.9p per Kwh (unit price)  However, this plan also has its disadvantages, when relocating before the time has elapsed, you could be charged for terminating the deal.

Finally, miners can count on this method, to put an end to depending on whatever bill is issued to them, and then, build rapport with the brand in control, and bid on a favorable price.

[safar1980]

Electricity bills are price intensive for bitcoin miners, but having a contract with the suppliers probably will secure more coins in expenses. Power suppliers vary, and the best tariff I'd recommend for miners is the fixed rate tariff that permits paying a similar amount of money for a specific period, regardless of the fluctuation in energy prices. Hence, talking to the company to purchase energy ahead of time for a desired period, knowing how much kwh that'll be consumed, is better than working with middlemen that add up money to electricity bills, which ends up affecting the miner's budgets.

I found a site, though it operates in the Uk, that helps with evaluating electricity prices, and finding of cheap power providers to collaborate and work with on a desired plan, and in the list was Scottish power with a three year plan and a charge of 23.9p per Kwh (unit price)  However, this plan also has its disadvantages, when relocating before the time has elapsed, you could be charged for terminating the deal.

Finally, miners can count on this method, to put an end to depending on whatever bill is issued to them, and then, build rapport with the brand in control, and bid on a favorable price.

23.9p per Kwh is $0.32 per kilowatt.
Do you realize that with such tariffs, mining will be unprofitable? You need to look for a tariff 8 times cheaper for mining.

[joniboini]

Hence, talking to the company to purchase energy ahead of time for a desired period, knowing how much kwh that'll be consumed, is better than working with middlemen that add up money to electricity bills, which ends up affecting the miner's budgets.

What kind of middlemen are you referring to here? A staff of an electric company or something similar? I'm not sure how it is in other countries, but in my country, every custom electricity request goes directly to the national electricity power supplier. If you need industrial-level electricity, there's no other choice unless you want to build your own renewable electricity power station.

I believe industrial miners already do this anyway. I doubt they'd pay extra unless there's an extraordinary circumstance. I'm not sure you can do the same if you're a small miner though. CMIIW.

[Accardo]

Hence, talking to the company to purchase energy ahead of time for a desired period, knowing how much kwh that'll be consumed, is better than working with middlemen that add up money to electricity bills, which ends up affecting the miner's budgets.

What kind of middlemen are you referring to here? A staff of an electric company or something similar? I'm not sure how it is in other countries, but in my country, every custom electricity request goes directly to the national electricity power supplier. If you need industrial-level electricity, there's no other choice unless you want to build your own renewable electricity power station.

The middlemen here are the branches of power companies that provide consumers with necessities; meter, bill, and payment process—isn't it true that they make extra profits? For example, In my locality most people pay in cash, pos, and transfer to branches, then the staffs relay it to the headquarter. I do not think the payment is done without any intermediary between customers and the company.

Hence, miners would be better off discussing contract with the head offices, that supervises the energy, and design consumption rate to help cut cost considering the amount of energy the mining rigs would consume.

[FP91G]

I think the volume of electricity consumption plays an important role here. If your company can build a data centre for 50 Megawatts, then you can negotiate for cheap electricity, but if you have consumption of several hundred kilowatts per hour, then you will pay the price of the commercial tariff.

[joniboini]

The middlemen here are the branches of power companies that provide consumers with necessities; meter, bill, and payment process—isn't it true that they make extra profits? For example, In my locality most people pay in cash, pos, and transfer to branches, then the staffs relay it to the headquarter. I do not think the payment is done without any intermediary between customers and the company.

Hmm, I'm not sure if those exist in my area. There are definitely shady employees from the company who offer some backdoor services such as supplying fake meters to reduce monthly bills, but there are no branches or sub-contractors who charge extra fees for electricity installation or monthly payments. I guess this is because the electricity supply is not privatized, so there's no competition from other companies.

[TheUltraElite]

There are definitely shady employees from the company who offer some backdoor services such as supplying fake meters to reduce monthly bills,

You dont want to get into those shady deals and suffer the consequences when you get caught. Like @FP91G said, if you are consuming a big deal of power you can cut a deal with the electricity company. But considering the fact that optimum cool temperature and cheap electricity is not common in the developing world, these chances are also limited or non-existent.

Mining is a cutthroat business, you have to get all these things in your favor or else you are playing the losing game.

[ABCbits]

I agree with @joniboini, it's nothing new and i also believe big miner already got such deal either by pay in advance or negotiate with the company directly. In fact, some miner even have great deal/contract with government where they got paid for not using electricity on certain condition[1].

[1] https://fortune.com/2022/07/12/texas-bitcoin-miners-paid-shut-down-power-grid-electricity-blackout-heat/

[Yamane_Keto]

You may get a good deal from energy providers in case of floods or when electricity consumption is low in your country, but you may not get a good deal in case of grid load, so if you find a cheap deal that lasts for several months or years, that is best. Otherwise, seasonal mining and the ability to move mining equipment every few months may be better than incurring high electricity bills. This will vary depending on the country, the size of the investment and the type of deals that can be made.

[shield132]

The best method for miners to have a profitable mining is to travel. Don't stick with your country, move around and you'll find a great deal. For example, in Georgia, Electricity price is exclusively one of the cheapest for BitFury. They are paying 0.05$ per 1kw/h. I bet you can't find such a good deal in the UK, Germany, Canada, USA. They are the direct purchasers of electricity, so OP as you said, that will help everyone to save on electricity but you have to be a very big miner to get such a good deal. If you are that big miner, then move your miners in other countries and find a better deal, that's my advice to everyone. As far as I know, Russia and Kazakhstan also have good electricity rates but to be honest, if you want to get such a good deal, you have to have someone in the government. It's a little bit dark area.

[FP91G]

The best method for miners to have a profitable mining is to travel. Don't stick with your country, move around and you'll find a great deal. For example, in Georgia, Electricity price is exclusively one of the cheapest for BitFury. They are paying 0.05$ per 1kw/h. I bet you can't find such a good deal in the UK, Germany, Canada, USA. They are the direct purchasers of electricity, so OP as you said, that will help everyone to save on electricity but you have to be a very big miner to get such a good deal. If you are that big miner, then move your miners in other countries and find a better deal, that's my advice to everyone. As far as I know, Russia and Kazakhstan also have good electricity rates but to be honest, if you want to get such a good deal, you have to have someone in the government. It's a little bit dark area.

There's a power shortage in Georgia right nowм
https://www.cdu.ru/tek_russia/articles/6/1122/  (RU)

Its government has plans to provide the country with its own electricity by 2030.
https://sputnik-georgia.ru/20240910/gruziya-k-2030-godu-dolzhna-polnostyu-obespechivat-sebya-elektroenergiey--premer-289829576.html  (RU)

[shield132]

The best method for miners to have a profitable mining is to travel. Don't stick with your country, move around and you'll find a great deal. For example, in Georgia, Electricity price is exclusively one of the cheapest for BitFury. They are paying 0.05$ per 1kw/h. I bet you can't find such a good deal in the UK, Germany, Canada, USA. They are the direct purchasers of electricity, so OP as you said, that will help everyone to save on electricity but you have to be a very big miner to get such a good deal. If you are that big miner, then move your miners in other countries and find a better deal, that's my advice to everyone. As far as I know, Russia and Kazakhstan also have good electricity rates but to be honest, if you want to get such a good deal, you have to have someone in the government. It's a little bit dark area.

There's a power shortage in Georgia right nowм
https://www.cdu.ru/tek_russia/articles/6/1122/  (RU)

Its government has plans to provide the country with its own electricity by 2030.
https://sputnik-georgia.ru/20240910/gruziya-k-2030-godu-dolzhna-polnostyu-obespechivat-sebya-elektroenergiey--premer-289829576.html  (RU)

Overall, don't get me wrong but Russian resources are not reliable resources to read about Georgia.

What do you mean in shortage? The fact that we import some electricity? That's not a problem, if there is a need, we will import as much as we want but I'll tell you what's the problem. In reality, there shouldn't be any shortage but it's created artificially for Bitcoin and crypto mining businesses. We provide Abkhazia with free electricity which they use for crypto mining (very stupid from us), we provide free electricity to mountainous areas and people who live there use that free electricity to mine crypto. Then there is BitFury which owns two very large mining data centres and uses a big portion of the total electricity. If anyone wants to start a mining business, this country is ideal. No shortage is going to affect them in the mining business.

[FP91G]

The best method for miners to have a profitable mining is to travel. Don't stick with your country, move around and you'll find a great deal. For example, in Georgia, Electricity price is exclusively one of the cheapest for BitFury. They are paying 0.05$ per 1kw/h. I bet you can't find such a good deal in the UK, Germany, Canada, USA. They are the direct purchasers of electricity, so OP as you said, that will help everyone to save on electricity but you have to be a very big miner to get such a good deal. If you are that big miner, then move your miners in other countries and find a better deal, that's my advice to everyone. As far as I know, Russia and Kazakhstan also have good electricity rates but to be honest, if you want to get such a good deal, you have to have someone in the government. It's a little bit dark area.

There's a power shortage in Georgia right nowм
https://www.cdu.ru/tek_russia/articles/6/1122/  (RU)

Its government has plans to provide the country with its own electricity by 2030.
https://sputnik-georgia.ru/20240910/gruziya-k-2030-godu-dolzhna-polnostyu-obespechivat-sebya-elektroenergiey--premer-289829576.html  (RU)

Overall, don't get me wrong but Russian resources are not reliable resources to read about Georgia.

What do you mean in shortage? The fact that we import some electricity? That's not a problem, if there is a need, we will import as much as we want but I'll tell you what's the problem. In reality, there shouldn't be any shortage but it's created artificially for Bitcoin and crypto mining businesses. We provide Abkhazia with free electricity which they use for crypto mining (very stupid from us), we provide free electricity to mountainous areas and people who live there use that free electricity to mine crypto. Then there is BitFury which owns two very large mining data centres and uses a big portion of the total electricity. If anyone wants to start a mining business, this country is ideal. No shortage is going to affect them in the mining business.

I do not claim that this article is 100% true, but the author of the article quotes Georgian Prime Minister Irakli Kobakhidze as saying that there is a shortage of electricity.

This article goaways that currently mining in Russia consumes over 2.5 GW, while in the US it consumes over 7 GW.
https://1prime.ru/20241002/mayning-851897908.html

If you read this thread, you will probably agree with the data for Russia
https://bitcointalk.org/index.php?topic=5464687.0

Show please Georgian sources on power consumption by Georgian miners.

[owen_a]

Electricity bills are price intensive for bitcoin miners, but having a contract with the suppliers probably will secure more coins in expenses. Power suppliers vary, and the best tariff I'd recommend for miners is the fixed rate tariff that permits paying a similar amount of money for a specific period, regardless of the fluctuation in energy prices. Hence, talking to the company to purchase energy ahead of time for a desired period, knowing how much kwh that'll be consumed, is better than working with middlemen that add up money to electricity bills, which ends up affecting the miner's budgets.

I found a site, though it operates in the Uk, that helps with evaluating electricity prices, and finding of cheap power providers to collaborate and work with on a desired plan, and in the list was Scottish power with a three year plan and a charge of 23.9p per Kwh (unit price)  However, this plan also has its disadvantages, when relocating before the time has elapsed, you could be charged for terminating the deal.

Finally, miners can count on this method, to put an end to depending on whatever bill is issued to them, and then, build rapport with the brand in control, and bid on a favorable price.

Have you heard of Octopus Agile? Your prices change every half an hour and are lower on average than the 0.23p/kWh. The other day they actually paid me to use electricity due to the prices being negative (thanks to the wind turbines generating excess). I have a GPU rig that fires up and pulls just under 1kW of power when the prices drops below 0. It doesn't happen every day but you can bet when there's strong winds it'll drop. Even if it's at 8p/kWh, that's still significantly less than the standard/fixed rate tariffs. I just play the game.

[FP91G]

Have you heard of Octopus Agile? Your prices change every half an hour and are lower on average than the 0.23p/kWh. The other day they actually paid me to use electricity due to the prices being negative (thanks to the wind turbines generating excess). I have a GPU rig that fires up and pulls just under 1kW of power when the prices drops below 0. It doesn't happen every day but you can bet when there's strong winds it'll drop. Even if it's at 8p/kWh, that's still significantly less than the standard/fixed rate tariffs. I just play the game.

Let's say you have been mining for 1 month, what is your average electricity cost?
And if you are mining on very cheap or free electricity 3 days a month, the payback period of your equipment increases 10 times, which is very unprofitable.

[owen_a]

Have you heard of Octopus Agile? Your prices change every half an hour and are lower on average than the 0.23p/kWh. The other day they actually paid me to use electricity due to the prices being negative (thanks to the wind turbines generating excess). I have a GPU rig that fires up and pulls just under 1kW of power when the prices drops below 0. It doesn't happen every day but you can bet when there's strong winds it'll drop. Even if it's at 8p/kWh, that's still significantly less than the standard/fixed rate tariffs. I just play the game.

Let's say you have been mining for 1 month, what is your average electricity cost?
And if you are mining on very cheap or free electricity 3 days a month, the payback period of your equipment increases 10 times, which is very unprofitable.

It's hard to calculate since it varies so much. The worst period is between 4-7pm since it jumps up to 30p+. So those times are no goers.

As for attempting to ROI, yeah you're right. It would take significantly longer, if not impossible if you only switched it on during negative periods.

The weighted average, so what you use when it's cheap, is about 16-18p/kWh. On days where it's negative for hours, that average drops.