Bitcoin Mining in Zambia: A Catalyst for Rural Electrification
Cryptocurrency mining in Zambia’s remote areas, particularly through the Zengamina hydro-power plant, demonstrates its role in boosting local electricity access and fostering economic growth. The partnership between Gridless and the hydro-power plant has transformed the region’s energy landscape, allowing for sustainable operations and improved livelihoods for residents.
In remote Zambia, a bitcoin mining operation has emerged alongside the Zambezi River, exemplifying how cryptocurrency mining can support rural electrification. Phillip Walton oversees a site consisting of 120 computers housed in a shipping container, leveraging the nearby hydroelectric power plant to provide clean and affordable energy for mining activities. With mining yielding daily earnings of approximately $5 per machine, cost-effective energy is crucial to sustain operations even when bitcoin values fluctuate.
The Zengamina hydro-power plant, built in the early 2000s with $3 million from charitable donations, serves approximately 15,000 locals but initially struggled financially. Daniel Rea, the site manager, states, “Every day we were wasting over half of the energy we could generate.” Partnering with Gridless for bitcoin mining has transformed the plant’s economics, enabling it to cover operational expenses and maintain lower energy prices for residents.
The local community is slowly experiencing the benefits of reliable electricity. For instance, barber Damian has seen his business thrive since gaining power, affirming, “Getting power has changed my life.” Meanwhile, young residents like Tumba and Lucy express the significant improvement in their quality of life, stating that electricity has enabled phone charging and better communication.
Gridless anticipates changes ahead, with plans to sell excess energy back to the national grid, which may signal the end of the mining operation in Zengamina. Nevertheless, Phillip Walton remains optimistic, believing the endeavor has positively impacted the area. The company is also exploring opportunities to establish their own hydro-plants, aiming to harness abundant hydroelectric potential across Africa.
While some authorities may express concern over bitcoin mining’s energy demands, the co-founder of Gridless, Janet Maingi, insists on the importance of an economically viable energy model to support African communities. Although challenges exist in navigating regulatory landscapes, the mining operation at Zengamina exemplifies how cryptocurrency can yield tangible benefits beyond mere profit.
This article illustrates how bitcoin mining in Zambia acts as a catalyst for rural electrification, positively impacting both local businesses and community welfare. Through strategic partnerships and clean energy sources, Gridless envisions further expansion into other rural areas, showing the potential for cryptocurrency to provide sustainable energy solutions. Despite facing regulatory resistance, the mining operation highlights the dual benefit of generating revenue while empowering underserved communities.
Original Source: www.bbc.com
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