Financial Insights That Matter
A remote bitcoin mine in northwestern Zambia is generating buzz for its unconventional setup: it’s powered entirely by clean hydroelectric energy from the Zengamina power plant.
Operated by the Kenya-based company Gridless, the mine taps into excess electricity from the plant’s small-scale grid to verify bitcoin transactions and generate profit, reported the BBC.
The project sits near the Zambezi River, where water surges through turbines to produce constant, low-cost energy. Inside a repurposed shipping container, each of the mine’s 120 computers earns about $5 a day, depending on the fluctuating price of bitcoin.
The Zengamina hydro plant was originally built in the early 2000s through charity donations to serve the local hospital and surrounding communities. But the area’s slow energy adoption meant much of the electricity went to waste — until Gridless moved in.
“Every day we were wasting over half of the energy we could generate, which also meant we’re not earning from that to meet our operating expenses,” said Daniel Rea, who runs Zengamina. “We needed a major user of power in the area, and that’s where the game-changing partnership with Gridless came in.”
The bitcoin mine now consumes around 30% of the plant’s output, helping subsidize electricity for the town nearby, where only one shop has a fridge and kids gather around a single computer to blast music.
Locals like barber Damian say access to power has been transformative: “Until I got power I had nothing and couldn’t do anything. When I got power I bought everything at the same time.”
“Electricity completely changed the lives of people here,” added Lucy Machayi, a townsperson.
Still, critics caution that these kinds of solutions are not a silver bullet. While this setup reduces emissions compared to mines fueled by dirty energy sources, crypto mining remains a highly energy-intensive industry.
Globally, bitcoin uses more electricity than some countries, according to Polytechnique Insights, and its expansion has been linked to increased retail power prices and carbon pollution, especially when miners plug into overstressed public grids.
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And the question remains: can crypto mining ever be truly sustainable? History offers warnings. A 2021 mining surge in Kazakhstan caused a 7% jump in national electricity use, leading to blackouts and a government crackdown, per the BBC. In the United States and Canada, miners have faced public backlash and been forced to shut down operations during power shortages.
Gridless has faced resistance from some authorities and companies who still view bitcoin mining as a power-hungry operation that diverts energy that could be used by rural communities.
But that won’t stop Gridless. The company is raising tens of millions to build more run-of-river hydro sites across Africa in order to bring both bitcoin profits and power access to rural areas.
“A consumer-driven, adaptive energy model is essential for scalable, affordable, and sustainable energy access,” Gridless co-founder Janet Maingi told the BBC.
For Gridless, mining is not a competitor but a bridge to greater access. It argues that its model prioritizes local demand first, maintaining that power will always flow to where it’s most valued — and that often means the communities themselves.
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