South Australian Electricity Now Cheapest in Aus — But Bitcoin Mining Remains Unprofitable

By Sam Town July 17, 2020 In Australia, Bitcoin, Bitcoin Mining

South Australian electricity prices are set to fall below Victorian and NSW prices for the first time in almost seven years, providing SA residents with significant reductions in power costs. 

Despite the significant price decrease in electricity costs, however, Bitcoin mining across Australian remains largely unprofitable for Australian Bitcoin miners. 

Major Australian energy supplier Origin is set to provide South Australian residents with savings of 5.6 percent this year, with default contracts falling 4.4 percent. AGL, similarly, will be lowering average household electricity prices by 2.7 percent during the 2019 to 2020 financial year.

SA energy regulator ESCOSA has published data that indicates an average saving of $62 per household in the state. SA Minister for Energy and Mining, Dan van Holst Pellekaan, highlighted the importance of providing South Australian households with affordable energy rates amidst the current health and economic crisis:

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“Cheaper wholesale electricity is very good news for South Australian businesses large and small and will assist our economic recovery as we emerge from the coronavirus lockdown”

Australian Bitcoin Miners Operate at a Loss After Halving

Energy prices may be falling in South Australia — but it’s not yet time to break out the ASICs. 

Even at Australia’s lowest energy rage, equivalent to 20.47 US c/kWh, Bitcoin mining remains largely unprofitable, with even the most advanced and efficient ASIC units running at a loss.

One of the most profitable ASICs in the market at the moment — the Bitmain Antminer Z15 — operates at a loss in Australia. With best-case Australian energy prices hovering around $0.29/kWh, the Z15 would cost roughly $10.34 daily to run, with a total daily income of 0.000072 BTC, yielding a daily loss of $9.40 and an annual loss of roughly $3,430.

Sam Town
Author

Sam Town

Sam Town is a FinTech and Blockchain Journalist from Adelaide, Australia. I work with a broad spectrum of finance, technology, and blockchain businesses to deliver engaging, high-quality content across a range of topics. Areas of specialization include FinTech, blockchain, NeoBanks, crowdfunding, P2P lending, tax structuring & strategy, artificial intelligence, InsurTech, and finance IoT applications.

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