In the remote northwestern region of Zambia, a bitcoin mine operates near the Zambezi River, utilizing energy from the Zengamina hydroelectric plant. Before the Kenyan company Gridless arrived, excess power from the plant was wasted, making electricity costly for local residents. Now, Gridless’s mining operation generates 30% of the plant’s revenue, significantly benefiting the town of 15,000 people by funding their electricity costs. However, changes are on the horizon. The Zengamina minigrid has received funding to connect to the national grid, which may make it economically unviable for Gridless to continue operating there. As a result, the company may need to look for new sites with unused energy resources.
Deep in the remote northwestern part of Zambia, a unique bitcoin mine is changing lives. This mine, situated near the Zambezi River, is powered by the Zengamina hydroelectric plant. For years, the excess energy produced by the plant went to waste, leaving the local community with high electricity costs. However, everything changed when a Kenyan company called Gridless stepped in.
Using the cheap, clean energy from the Zengamina plant, Gridless set up its mining operation. This partnership has been a game-changer. The bitcoin mine now contributes 30% of the plant’s revenue, which helps provide affordable electricity for the town’s 15,000 residents. This project not only supports the local economy but also enhances the quality of life for many people.
But soon, things will take a different turn. Zengamina is on the brink of connecting to the national electricity grid, which means its power will no longer be beneficial for Gridless. As a result, the company will need to look for new opportunities for harnessing stranded energy elsewhere.
This story highlights the innovative ways in which renewable energy can be utilized, transforming communities while also advancing technological advancements in cryptocurrency mining.
Source: BBC
What is Bitcoin mining?
Bitcoin mining is a process where computers solve complex math problems to validate transactions on the Bitcoin network. It involves powerful computers that require a lot of electricity. Miners earn Bitcoin as a reward for their work.
How is Bitcoin mining helping rural Zambia?
In rural Zambia, Bitcoin mining is creating a new source of income. By using renewable energy sources like solar power, miners can reduce costs and contribute to the local economy. This helps improve access to electricity and other services for the community.
What are the benefits of using renewable energy for Bitcoin mining?
Using renewable energy for Bitcoin mining helps reduce environmental impact. It lowers electricity costs and makes mining more sustainable. In Zambia, solar and hydropower can provide cheap electricity, allowing miners to operate without hurting the environment.
Are there any challenges for Bitcoin mining in Zambia?
Yes, there are challenges. The infrastructure for electricity and internet access can be limited, especially in remote areas. Also, sometimes the initial investment to set up mining operations can be high. However, many local entrepreneurs are finding ways to overcome these obstacles.
Can Bitcoin mining support local jobs in Zambia?
Absolutely! Bitcoin mining can create jobs in various areas, such as equipment maintenance, energy production, and support services. This helps build local skills and provides income opportunities for people in rural communities.