Switzerland’s Canton of Bern approved exploring Bitcoin mining to use surplus energy and stabilize the grid. The initiative aims to attract firms with innovative Bitcoin strategies despite initial government opposition.
A motion to investigate Bitcoin mining as a means of stabilizing the electricity infrastructure and utilizing surplus energy has been approved by the parliament of the Canton of Bern in Switzerland.
The initiative, which was introduced by the cross-party Parliamentary Group Bitcoin on March 14, 2024, was ratified by the Grand Council with a decisive vote of 85 to 46, despite government opposition.
The government council is directed by the initiative to evaluate the potential for Bitcoin mining to repurpose unused energy and generate economic opportunities.
Introduced by the bipartisan Parliamentary Group Bitcoin, the “Cantonal Bitcoin Strategy III” proposal seeks to make Canton of Bern “an attractive location” for firms with an innovative Bitcoin strategy.”
The government is tasked with the preparation of a report that will address three critical points: the identification of areas in Bern that have unused energy, the assessment of the potential for Bitcoin mining to utilize this surplus in collaboration with Swiss mining companies, and the assessment of its ability to stabilize electricity grids during periods of supply fluctuation.
“Bitcoin mining companies bring in investments, create jobs, and help to develop renewable energy sources in many places around the world,” the proposal states.
According to the Blocktrainer report, the proposition was supported by a number of political factions, such as the Swiss People’s Party, Green Liberal Party, Center Party, and EDU. However, there were some dissenting voices from left-green groups.
Samuel Kullmann, a key proponent of the resolution and an EDU representative, celebrated the vote as a triumph over skepticism.
“Even though the debate was heavily influenced by classic FUD arguments and missed the point, the proposal ultimately found a clear majority,” Kullmann said.
By drawing comparisons to Texas, where Bitcoin processors have collaborated with grid operators to balance energy supply and demand, the proposal implies that Bern could achieve comparable success.
The government council, which is responsible for the implementation of laws in the canton, has previously advised against the motion, citing concerns regarding energy consumption, competition with other sectors, and Bitcoin’s non-legal tender status.
The environmental impact of Bitcoin mining is frequently the focal point of the debate, as critics contend that the energy requirements of proof-of-work cryptos such as Bitcoin transcend those of numerous nations.
In March, the global non-profit organization Greenpeace accused the Bitcoin mining industry of having “deep ties” with the fossil fuel industry and “right-wing climate deniers,” which resulted in a significant backlash against the organization.
Nevertheless, recent research indicates that the prohibition of Bitcoin mining may not achieve the intended reduction in emissions.
A recent study discovered that the relocation of operations to countries with less sustainable energy sources could inadvertently increase global carbon emissions due to crypto mining restrictions in specific regions.
Proponents contend that Bitcoin mining can function as a flexible energy consumer, repurposing surplus electricity that would otherwise be discarded, despite criticisms.
