Zambia Taps Hydroelectric Power for Bitcoin Mining

Gridless’ Partnership with Zengamina Hydro-Power Plant

Gridless’ initiative in Zambia highlights the dual utility of renewable energy in cryptocurrency mining and local development, showing potential for economic growth alongside community support.

Gridless, a company from Kenya, has partnered with Zambia’s Zengamina hydro-power plant to enable Bitcoin mining using renewable energy. This collaboration increases power plant revenue while distributing electricity affordability effectively.

Philip Walton, a co-founder, leads these operations, focusing on sustainable energy. The initiative involves a shipping container with 120 Bitcoin mining computers, enhancing local economic prospects.

Impact on the Local Community

The mining initiative positively impacts the local community by bolstering the financial sustainability of the hydroelectric plant and reducing electricity costs for around 15,000 locals. The project’s implications include expanded electricity services in rural areas, strengthening local businesses and education access. Walton highlights their approach of being an energy producer over a traditional Bitcoin miner.

“The truth is that Bitcoin mining doesn’t pay very high prices for electricity. If we think of ourselves less as a Bitcoin miner and more as an energy producer, then Bitcoin becomes one buyer that has a price they’re willing to pay. The community is another buyer that will pay a higher price.” – Philip Walton, Co-founder, Gridless

Challenges and Future Prospects

Despite benefits, the project faces skepticism regarding energy demand concerns from authorities and ongoing debates over environmental effects. Balancing mining and community power needs remains a critical focus.

Such initiatives anticipate increased demand for electricity aligning with technological development. Market experts observe a potential shift toward sustainable energy models within crypto mining, inspired by Zambia’s approach.