French lawmakers propose a five-year trial to use surplus electricity for Bitcoin mining

Lawmakers in France proposed a five-year experiment to allow energy producers to use surplus electricity for mining Bitcoin.

This initiative, detailed in a bill submitted on July 11, aims to enhance grid stability, monetize excess production, and reduce nuclear power plant modulation cycles.

"By developing a French mining sector with a controllable and carbon-free electricity mix, France could establish itself as a major player in the cryptoasset ecosystem," the proposal said.

Lawmakers stated that electricity producers are often compelled to sell overproduced energy at a loss due to a lack of storage, which constitutes an "unacceptable economic and energy loss."

Furthermore, due to regulations mandating nuclear power plants to modulate their power output depending on the amount of production from renewable energy sources strain the power plant's infrastructure, the proposal said.

Should the bill be enacted, France intends to establish data centers near energy production sites, possibly in abandoned factories or facilities. This strategy is anticipated to yield substantial benefits without compromising the existing energy supply.

"In short, Bitcoin mining is an innovative use, capable of converting a problem (unused surplus) into an economic opportunity," the proposal said.

Citing the Association for the Development of Digital Assets (ADAN), lawmakers said allotting a single gigawatt of power to mining could yield $100 to $150 million in annual revenue.

"Another advantage of Bitcoin mining is the production of heat, generally considered waste, which can be recovered," the proposal said. "Mining computers in fact release considerable heat, which can be captured via heat exchangers to heat buildings, agricultural greenhouses or power industrial processes."

The lawmakers added that such an approach to energy efficiency is already adopted in Iceland, Norway and Sweden, stating that the method is technically feasible.