Very much has been discussed how intermittent renewables like wind and solar negatively affect grid stability and frequently need govt subsidies to create positive monetary returns on investment (ROI). Less properly understood, but a lot more important, is the truth these intermittent renewables decrease our worldwide net energy surplus in comparison with the coal, oil, gas and nuclear power sources they replace. Put simply, our current technology generate an increased energy output on the power inputs versus wind and solar.

The worlds present quality lifestyle is a direct consequence of power-generation technologies creating a high power surplus. Research suggests electrical power from wind and solar struggles to achieve break-even amounts relative to the prevailing energy surplus financial threshold, suggesting they’ll diminish our future quality lifestyle.

Understanding why power surplus matters is paramount to understanding human improvement. Additionally it is the key to focusing on how the Bitcoin systems energy-reliant proof-of-work consensus system can be a device that expands societys power surplus well in to the 21st century.

WHAT’S Energy Surplus?

Having a power surplus is essential to survival.

Have a cheetah, for instance. A cheetah consumes a significant amount of power pursuing its prey. Several chases don’t succeed. For the several that create a kill, the power provided by feeding on its prey should be greater than all of the power ingested in prior chases (and become enough for another chase).

Nevertheless, beyond the maintenance power required just to live life and hunt, the power surplus must be large more than enough to allow a mom cheetah to provide birth, nurse her cubs and devote time for it to increasing them. For a cheetah to call home normally, its power surplus must be properly above a break-even degree.

The same could be said of the fish, an insect, the tree or even any organism or program that will require energy, including people and individual economies. The larger the power surplus inside a system, the even more varied, robust and resilient the machine is because it could easily meet its fundamental needs with surplus power for reproduction, experimentation, development and growth.

Power surplus, or net power, is measured by power returned on power invested (EROEI). EROEI may be the ratio of the power gathered by a program numerator or the caloric power of the prey to the power expended along the way of gathering that power denominator or the power expended on the hunt. To be precise, the calculation should make use of energy units, ideally joules, the international regular for measuring the power content of high temperature and work.

Just like a economic ROI, an EROEI > 1 implies that something gathers more power than it expends to assemble that energy, electronic.g., the cheetah eats even more calories than it requires for basic features. The effect is surplus energy which allows a mom cheetah to provide birth and increase her cubs. When EROEI = 1 the power received equals the power invested (breakeven) and the cheetah hardly survives and cannot reproduce. An EROEI < 1 shows that the machine requires more power than with the ability to gather, electronic.g., the cheetah cannot survive.

In the individual entire world, an EROEI < 1 can be a recipe for loss of life and extinction. An EROEI = 1 is really a tenuous stability between life and loss of life with no surplus power for societal development and advancement. Nevertheless, a big and increasing power surplus created from high EROEI technology has allowed individual civilization to increase and flourish creatively, technically and culturally.

Energy Will be Real Wealth

To put it simply, energy is our actual wealth and our development depends upon how efficiently we change primary energy into helpful energy that allows us to accomplish useful work. As people developed over millennia we created better and better technologies to get and convert significantly dense resources of primary power into useful energy.

For instance, crude essential oil contains about 44 MJ/kg (megajoule per kilogram) of warmth energy, dark coal about 25MJ/kg, dry wooden about 16MJ/kg and peats and grasses 6-7MJ/kg. When combusted, their saved chemical substance energy produces heat. Extra technology converts a few of that high temperature to a far more useful secondary power like electricity. Human technologies continued to advance in order to harness oils increased power density versus the peats and grasses our distant ancestors useful for fuel. Out of this denser power came exponential development in societys power surplus that furthermore unleashed massive benefits in know-how and standards of dwelling.

While we often concentrate on a technologys power efficiency of converting gasoline into function (e.g., an interior combustion engine comes with an operating thermal performance of +/- 25%), EROEI analysis requires a more holistic technique. It accounts for the excess energy expenses of the components and processes had a need to build the motor alongside operating it. That’s where EROEI evaluation can reveal the power surplus of different energy plant technologies.

For an electrical plant, the EROEI equals the power produced over the existence of the plant separated by the power that was necessary to construct, operate and decommission the plant. After like the energy expenses of its parts like metal and concrete and the power costs of its energy, a fossil fuel energy plant must produce at least exactly the same amount of power over its lifespan to separate even on a power basis. Same applies to renewables and nuclear.

Nevertheless, running a power break-even power plant will be pointless, since all of the energy stated in the plants life time operation will be offset by the same quantity of energy consumed to create and operate the plant. There will be no power surplus for all your other things we are in need of (food production, colleges and hospitals, etc) and desire (museums, travel, sports activities, scientific study, etc).

Recall a cheetah requires a power surplus merely to live a standard life. So do human beings in the 21st hundred years, but to a very much greater diploma.


Probably the most in depth and rigorous analyses of various power plant life EROEIs is a couple of papers by Weibach et al1. The authors used a uniform bottom-up methodology to calculate the power expenses (in terajoules) altered to exergy (the used/useful power) embedded in the components, labor and fuel materials required to build, work and decommission numerous electricity-generating technology. This utilized energy expense was split into the utilized power returned the electrical power generated on the lifespan of each kind of strength plant to calculate personal EROEIs.

The authors furthermore in comparison the representative plant EROEIs to a good economic EROEI, termed the economical threshold. That is approximated by the ratio of an economys GDP to its unweighted last energy consumption. Used it is GDP split by complete end energy intake for once time period divided by the common cost of this end energy usage. The resulting quotient captures the financial value of the power dividend that the energy-producing section of an economic climate will pay to the non-energy-producing elements of the economy.

A higher and growing financial threshold describes a global with highly effective energy-gathering processes that create a large power dividend allowing an economic climate to diversify, develop and flourish. A declining financial threshold indicates something in contraction with much less efficient energy-gathering procedures that crowd out various other non-energy sectors resulting in a decline in degrees of economic prosperity.

The outcomes of the papers evaluation are proven in the chart below.

Information: Exergy expenses in terajoules. Energy storage space (buffering/load-following) expenses used uniformly as a pump-storage system; battery energy expenses are much higher. PHOTOVOLTAIC is photovoltaic solar panels common to rooftop set up, 1,000 peak hours yearly. Solar CSP is targeted solar (thermal). Biomass will be corn (maize), 55 ton/ha harvested (wet). Wind assumes 2,000 full load-hours yearly. Gasoline CCGT is combined period gasoline turbine. Coal is really a blend of tough (underground) and brown (open up pit), transport excluded. Nuclear is regular pressurized drinking water reactors, enrichment: 83% centrifuge, 17% diffusion. Financial threshold representative of OECD-type countries. See take note 3 for some safety measures when calculating EROEI.

It really is obvious that wind and solar possess EROEIs which are orders of magnitude below set up electricity-production systems. They regularly underperform those of hydro, nuclear and fossil gas power plants, so when energy storage is roofed, their EROEIs more deteriorate.

Aside from hydro, nearly all renewables cant accomplish the break-even economic threshold. Basically, they cant stand by themselves, energetically speaking. They might fail if they experienced to deliver the power for their construction, procedure and decommissioning and so are dependent on the prevailing power surplus from fossil fuels and nuclear. Furthermore, inserting them into our existing energy combine as replacements for present fossil gas and nuclear systems will dilute our present economic wealth.

You can find four significant reasons intermittent renewables dont measure:

  1. Wind and solar systems require large levels of costly high-energy components (steel, cement, copper and PV panels) in accordance with their lifecycle energy result.
  2. Wind and solar possess shorter living cycles (20-30 years) than plant life that operate on fossil fuels, hydro or even nuclear(50-70), which recover their initial energy costs rapidly and also have longer operating intervals to create surpluses.
  3. Wind and solar intermittency outcomes in lower capacity elements (actual energy output as time passes vs potential energy result) than hydro, nuclear and thermal. This typically outcomes in overbuilding by 2-4x, which requires even more materials and higher power investment expenses.
  4. Intermittent wind and solar require the inclusion of buffering via electric batteries to create their electricity beneficial to the grid. Power storage isn’t new energy, only a time change of electricity use. Electric batteries have become energy intensive to produce and will have an EROEI < 1. Consequently, any electricity-producing technologies requiring batteries could have a lesser combined EROEI compared to the generation element itself, as Weibachs outcomes show.

Whenever we remove high-EROEI systems and replace them with low-EROEI technologies we reduce the total power surplus that supports lifestyle once we know it. Even more of an economy eventually ends up being focused on energy-gathering routines at the trouble of other financial sectors. Its not really the direction humanity really wants to follow decades of profiting from high power surpluses directly due to fossil fuels.


Just what exactly can match our growing dependence on electricity with the best EROEIs? Nuclear.

Nuclear generates tremendous surplus power as noticed by its EROEI of 75. It produces a lot more than doubly much surplus power as gas and coal.

Nuclear advantages from three critical indicators: it makes use of an energy-dense fuel (3.5% enriched uranium has 3,900GJ/kg) in accordance with the fuels power costs of manufacturing; it works at the best capacity factors of most available electricity-producing systems; and contains the longest useful living cycles. Nuclear vegetation built nearly sixty years ago remain operating today at capability aspects that wind and solar advocates can only just dream about.

Nearly all nuclear plants still utilize the same reactor style (pressurized drinking water) from the 1950s, but this shows that present R&D into new nuclear technology may lead to even larger EROEI plants. Because the highest power surplus technology to change primary power (atomic) to useful power (electricity), nuclear power ought to be the go-to technologies for some of our new electrical power production.

Politics apart, by linking Bitcoin mining, the worlds most transportable and flexible way to obtain large-scale electricity need to nuclear, humanity can press its power surplus to even increased levels. Rather than overbuilding low-EROEI, intermittent renewables like wind and solar, our goal ought to be to encourage advancement of higher EROEI nuclear era using Bitcoin minings distinctive attributes being an incentive.

Nuclear strength plants require huge and stable requirement loads given their required high capacity aspects. Bitcoin mining offers specifically this kind of load profile. Utilizing their scale and balance, Bitcoin miners can co-locate with fresh nuclear projects to be able to suck up their electricity production prior to the plant life dispatch is fully required on the grid. After that, given their inherent versatility and portability, the supportive miners can unplug in one plant and relocate to another new task. As societys energy requirements continue to develop, we can make sure that this pre-constructed high-EROEI electricity offer is prepared and waiting.

Energy MAY BE THE Real Currency

Energy may be the only universal foreign currency: among its many forms should be transformed to obtain anything completed.2 – Vaclav Smil, writer of Power And Civilization: A BRIEF HISTORY.

Money is a claim on power. The issue with fiat cash is that it’s disconnected from energy because of zero backing by way of a scarce and energy-structured asset, and by continuous government manipulation.

Bitcoin, however, is the purest financial embodiment of energy up to now. This is a clear, immediate and unmanipulated state on energys economic worth. Bitcoins proof-of-work consensus system makes this achievable. Being probably the most decentralized system on the planet will ensure it continues to be this way well in to the future. We have been only now starting to understand precisely how powerful proof-of-work will undoubtedly be in reorienting human being effort towards highly optimistic net energy-producing technology.

Intermittent energy, as presently pursued by its advocates, is only going to reduce the worlds current power surplus, leading to painful declines in criteria of living. It really is apparent that some electricity-production technology are more advanced than others on a net power basis and without knowing this, our options will produce serious unintended consequences. The 2022 power crisis in European countries revealed a far more fragile program than we’d previously understood and may signal what future problems can look like rising expenses and intermittent source.

Thankfully, Bitcoin may fix this. Bitcoin mining paired with advancement of new nuclear tasks can help reverse this program and increase the worlds power surplus to energy the 21st century.


1 Weibach et al., Energy 52 (2013)

Weibach et al., EPJ Internet of Conferences 189 (2018)

Raw data for chart:

2 Power and Civilization: A BRIEF HISTORY, Vaclav Smil (2017).

3 Quite a few treatment is advisable when contemplating EROEI calculations:


Initial, methodology matters. May be the approach top-down (power costs produced from fiat expenses) or bottom up (power costs produced from material amounts and manufacturing procedures)? The former can simply confuse fiat with power units giving useless outcomes. The latter, while needing even more effort, will be more accurate.

2nd, while EROEI is really a simple ratio to calculate, there isn’t yet a typical definition of program boundaries to utilize when identifying the numerator and denominator. Some analysts consider just the fuel prices. Others include the expenses of the plant. While nevertheless others include the expenses of the plant and extra upstream costs incurred in order to develop the plant. Weibach et al. used a uniform boundary definition over a complete life cycle evaluation for each kind of power plant. The full total energy was furthermore adjusted to utilized power (exergy) invested and came back for each kind of plant. This outcomes in among the cleanest analyses offered.

Third, EROEI is place dependent. Windier areas have greater power returned on a single energy invested. Exactly the same goes for sunnier places for solar. Fossil gasoline plants will also possess varying EROEIs based on their proximity to energy supplies and the grade of fuel available.

Actually the EROEIs of fossil fuels such as coal and oil usually decline over time. As the embedded power in the chemical substance composition of comparable grades of coal and essential oil will be the same between various stocks, the power necessary to gather those shares has historically enhanced. Newer discoveries are usually farther from end intake and require more power to extract. Todays deep-water drilling is a lot more costly in power terms than drilling has been in the East Texas Essential oil Field through the 1940s once the field was youthful.

Lastly, like a large amount of data evaluation, EROEI can be subject matter to manipulation to be able to justify private biases and political goals. However, EROEI has worth for relative power surplus evaluation. With consistent program boundaries and a precise calculation methodology it includes a standardized solution to compare the web energy produced by numerous power plant systems without regard with their frequently distorted fiat ROIs.

It is a guest post by John Thompson. Views expressed are completely their own and don’t always reflect those of BTC Inc or Bitcoin Magazine.

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