- Texas HB 2789 mandates 20% storage for 10 MW+ miners.
- Miners consume 5.2 GW, 12% of ERCOT Q1 2026 peak.
- USD 3.5 billion storage investments projected by 2030.
Texas HB 2789 introduces crypto mining regulations mandating 20% battery storage for facilities over 10 MW. Lawmakers filed the bill April 13, 2026, to curb 5.2 GW mining demand—12% of ERCOT's Q1 2026 peak.
HB 2789 Storage Mandate Specifics
New miners deploy lithium-ion or flow batteries with 4-hour duration at 0.25C rates. Sites over 50 MW retrofit by December 31, 2028. Developers access USD 50/kWh tax credits.
Texas Blockchain Council opposes, estimating USD 1.2 billion costs. Pamela Gorman, ERCOT policy director, testified miners caused 15 curtailments in 2025 (ERCOT, 2026). Batteries mitigate heatwave peaks, she added.
ERCOT Grid Strain from Miners
Bitcoin mining consumed 2.3% of U.S. electricity in 2025 (EIA, 2026). Texas hosts 35% of global hash rate. Riot Platforms plans 700 MWh storage at its 1 GW Corsicana site.
Batteries achieve 85-90% round-trip efficiency per IEC 62619. LCOS drops to USD 0.12/kWh at 100 MWh scale (Wood Mackenzie, 2026). Miners combine renewables and storage for compliance.
Dennis Porter, Bitcoin Policy Institute CEO, stated: "Storage enables VPP participation."
ERCOT Projections Fuel Regulations
ERCOT forecasts 10 GW mining growth by 2030 without controls (ERCOT Seasonal Assessment, 2026). HB 2789 caps new permits at 2 GW yearly unless storage-backed. Batteries cut curtailments 40%.
Oncor commits USD 500 million to grid hardening for mining. FERC Order 2222 enables miner VPPs for ancillary services.
Projected Battery Investments
HB 2789 drives USD 3.5 billion storage by 2030 (Wood Mackenzie, 2026). Tesla Energy eyes 700 MWh pilots at mines. IRA credits offset 30-40% capex.
Saul Kafkin, Wood Mackenzie analyst, predicts 25% LCOS reductions via scale. Marathon Digital adds 40 MW/160 MWh LFP storage (400 Wh/L density) at its 200 MW site, boosting IRRs to 12%.
LFP offers USD 120/kWh pricing, 6,000 cycles at 80% DoD. CATL and BYD secure 500 GWh U.S. supply by 2028.
Stakeholder Views on Mandates
Sierra Club Texas supports resilience gains. Miners warn of hash rate shifts to UAE. Bitdeer seeks hydro exemptions.
Bill grants 10% waivers for 90% renewables. CenterPoint Energy backs it, citing USD 0.02/kWh miner volatility (CenterPoint, 2026).
Operator Financial Impacts
100 MW sites face USD 20 million capex at USD 200/kWh. Credits offset 25%. Breakeven occurs at BTC USD 60,000, 15% IRR.
V2G pilots use second-life EV batteries (80% SoH), delivering 10-year life and USD 15/MWh arbitrage (BloombergNEF, 2026).
Global Context for Texas Policy
Texas echoes EU's 15% data center storage rule. Kazakhstan paused miners over grids. China's 2021 ban tripled Texas hash rate.
IRA Section 45X provides USD 35/kWh module credits. Lithium volatility hits 20% from Australian sources.
HB 2789 Crypto Mining Regulations Outlook
Session ends May 15, 2026. Governor Abbott may veto caps. Amendments could lower mandates to 15% with USD 2 billion miner pledges. ERCOT's June outlook will shape final crypto mining regulations.
