Bitcoin mining has significantly reduced coal usage by 43% since 2011, according to new data.
In recent years, the energy landscape of Bitcoin mining has undergone a transformation, gradually shifting away from high-impact energy sources. A new report published on March 31 by the MiCA Crypto Alliance in collaboration with risk metrics platform Nodiens reveals that coal usage in Bitcoin mining has seen a sharp decline over the past thirteen years.
The data shows that the share of coal-derived energy used in Bitcoin mining has dropped from 63% in 2011 to 20% in 2024, with an average annual decrease of approximately 8%. This trend marks a significant shift in the industry’s energy practices.
At the same time, the share of renewable energy used in mining operations has steadily increased, growing at an average annual rate of 5.8%.
The contrast between Bitcoin and global coal trends
Bitcoin mining’s energy shift is happening against the backdrop of record-breaking global coal consumption. According to the International Energy Agency (IEA), an intergovernmental organization based in Paris, global coal usage reached a new all-time high in 2024, estimated at 8.8 billion tons.
The IEA also projects that global demand for coal-based energy will remain near record levels until 2027, with emerging economies such as India, Indonesia, and Vietnam expected to see significant increases in coal consumption in the coming years.
Five energy scenarios
The report outlines five potential future scenarios for Bitcoin’s environmental impact, ranging from a bearish forecast with Bitcoin at $10,000 to an extremely bullish scenario of $1 million.
Specifically, the study includes five price scenarios:
- Low scenario: $10,000
- Base scenario: $110,000
- Mid scenario: $250,000
- High scenario: $500,000
- Very bullish scenario: $1 million
In a mid-price scenario, renewable energy is expected to account for between 59.3% and 74.3% of Bitcoin’s total electricity consumption, depending on policy decisions, excluding nuclear energy usage.
The report also mentions a peak in mining energy consumption around 2030, referencing a similar forecast from a NYDIG study published in September 2021. According to NYDIG estimates, even in a high-price scenario, mining electricity consumption would peak at 11 times its 2020 level, accounting for just 0.4% of global primary energy consumption and 2% of global electricity generation.
