How Do Energy Costs Influence a Miner’s Profit Margin in PoA?

Energy costs are a major factor in a miner's profit margin. In PoA, the PoW phase requires electricity, so miners must ensure the block reward and transaction fees outweigh their operational costs.

Lower energy costs translate directly to higher profits. High energy prices can force inefficient miners out of the market, potentially concentrating the PoW hash power.