Behind-the-Meter Mining connects mining on the local side of a specified metering point relative to the public electricity grid, often alongside local generation. The actual wiring and measured flows matter. Physical proximity to a power plant is not enough, and the label alone proves neither island operation nor profitability.
U.S. DOE, the US Department of Energy, explains behind-the-meter using generation at a customer’s premises behind the utility meter. The abbreviation BTM therefore needs a specific metering point. Sketch the public grid, meter, local generator and loads. If miners draw from the local system on this side of the boundary, their consumption changes the flow through the meter. Two containers beside a power plant do not establish that arrangement. Sharing land or an owner is not the same as sharing an electrical system. [1]
A kilowatt (kW) measures power, the rate of generation or consumption at a moment. Take our simplified example without storage or losses: panels are producing 100 kW, miners draw 60 kW and auxiliary equipment draws 10 kW. That leaves 30 kW for export, if the connection allows it. When generation drops to 20 kW, the shortfall is 50 kW: either the grid supplies it or demand must fall. We are tracking power, not annual energy. EIA, the US Energy Information Administration, distinguishes these quantities. [2]
A generator rated at 100 kW does not guarantee 100 kW at every moment. EIA distinguishes equipment’s ability to generate under specified conditions from actual production over time. Sunlight changes for solar panels; other generators need fuel or maintenance. Other activities and the generator itself may use some electricity too. Uptime, the share of time equipment is working or available, cannot therefore be inferred from plant size alone. Specify which equipment and which kind of availability is being measured. [2]
U.S. DOE separates energy charges in kWh, maximum demand in kW and fixed charges. A kilowatt-hour measures energy: a kilowatt drawn for an hour. Local generation may reduce energy purchases, while a brief demand spike still affects the demand charge. Some tariffs also include charges for the grid’s readiness to provide backup capacity. Compare the full tariff actually applicable. Neither a low wholesale price nor lower energy purchases alone tells you what the whole site will pay. [3]
A no-export setup controls operations to prevent electricity flowing into the public grid. It can still import electricity. U.S. DOE even describes possible tariff requirements for minimum imports; this is not a rule for every country or connection. BTM itself therefore authorizes neither unrestricted exports nor imports. The connection’s terms, contract and controls determine that. If local demand suddenly falls, the system must adjust generation or another flow appropriately, rather than assume the surplus disappears. [3]
A microgrid is a local electrical system with coordinated controls; U.S. DOE describes its ability to disconnect from the main grid and operate independently. This island operation must be designed. It needs suitable protection, balancing generation with demand and a way to restart. BTM is not automatic backup power. A grid-connected generator without a designed backup system may stop supplying power for safety during an outage. Panels on site therefore do not promise running miners when the surrounding area goes dark. [4] [1]
U.S. DOE describes both local use and selling surplus electricity. Using power for mining may mean giving up income from another customer. Do not count that forgone income as a sale you still make. Establish whether the alternative was actually available and at what price; sale value need not equal a retail tariff. Energy Arbitrage, choosing according to differences in energy’s value across times or uses, helps explain the comparison. Equipment, fuel, maintenance and connection costs also remain. [1]
U.S. DOE recommends interval data: records of consumption during individual time periods. Compare generation, miners, auxiliary demand and both directions of grid flow in matching intervals. If the amounts of energy exported and imported over a month match, the net energy balance is zero. It may still hide cheap daytime exports and expensive imports at other times. A monthly total cannot verify either the bill or whether generation coincides with mining. BTM describes the arrangement; energy origin, emissions and financial performance need their own evidence. [3]
For the clearest picture, read this entry together with Off-Grid Mining, Energy Arbitrage, Curtailment, Uptime. The reverse links also lead from Off-Grid Mining, Grid-Connected Mining, Power Purchase Agreement.