Bitcoin Mining in Zambia: Transforming Rural Electrification and Community Growth
In remote Zambia, a bitcoin mining operation capitalizes on hydro-electric power from the Zambezi River, offering affordable energy and revenue for local communities. Partnering with the Zengamina Hydro Power Plant, Gridless aids in rural electrification while generating profits through mining operations. This collaboration presents a sustainable model for integrating digital economies with local energy needs, although it faces challenges regarding energy consumption and community perceptions.
In Zambia’s remote northwest, a bitcoin mining site operates near the roaring Zambezi River, leveraging hydro-electric power for efficient operation. Phillip Walton, a representative of Gridless, highlights how the mine utilizes the river’s energy, generating power at a low cost which is pivotal for their operations. Each of the 120 computers in the shipping container can yield approximately $5 daily, even amidst fluctuating bitcoin values. “We recognised that in order to get better mining economics… it allows us to effectively get cheaper power,” Walton explains.
Zengamina Hydro Power Plant, established with charitable contributions, serves as a mini grid, supplying electricity to approximately 15,000 individuals. The facility, run by Daniel Rea, was initially developed to provide energy for a local hospital but struggled financially due to low community engagement. Partnering with Gridless has allowed the plant to reclaim waste energy, with the bitcoin mine generating around 30% of its revenue, aiding in keeping local power prices affordable. “We needed a major user of power… and that’s where the game-changing partnership with Gridless came in,” states Rea.
The residents of Zengamina, a small town characterized by basic structures, largely remain unaware of the bitcoin mining operations. Local business owner Damian recounts the transformative impact of newly available electricity on his barber shop and life, while sisters Tumba and Lucy Machayi reflect on how power has revolutionized their communication options. “Electricity completely changed the lives of people here,” Lucy affirms. The bitcoin mine has inadvertently supported the local community, despite the residents not actively engaging with its operations.
Looking ahead, the hydro plant plans to expand its reach by joining the national grid. While profitability from bitcoin mining may decline, both Phillip Walton and his team regard this as a positive development, having successfully operated for several years while benefiting the community. Gridless sees significant potential for developing additional mining sites near hydro facilities to further uplift rural areas in Africa. The co-founder, Janet Maingi, articulates their vision, “A consumer-driven, adaptive energy model is essential for scalable, affordable, and sustainable energy access that meets the needs of African communities.”
Despite the company’s ambitions, it faces skepticism from local authorities who view bitcoin mining as wasteful energy consumption. Nonetheless, Gridless underscores its commitment to prioritizing community needs over profits. The overall industry continues to face scrutiny, notably in terms of environmental impacts; energy consumption during mining remains a pressing concern. However, innovations like the Zengamina operation pose as examples of the positive influence that bitcoin mining can impart on regions in need of reliable energy solutions.
The bitcoin mining operation in Zengamina highlights the potential benefits of utilizing renewable energy to bolster rural electrification in Zambia. Gridless’ partnership with the Zengamina Hydro Power Plant has been mutually beneficial, supplying electricity at affordable rates while generating revenue. This collaboration exemplifies how innovative energy solutions can empower underdeveloped communities while simultaneously engaging with contemporary digital economies. The initiative showcases a model where responsible mining operations can coexist with community interests, paving the way for future developments in sustainable energy and economic vitality in rural Africa.
Original Source: www.bbc.co.uk
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