With China’s ban on cryptocurrency, bitcoin miners have looked for locations worldwide with cheap power and friendly regulators.
The recently-commissioned Grand Ethiopian Renaissance Dam has given Ethiopia significant capacity and led to surprising success in power sales to the crypto sector.
“Currently, 18% of EEP [Ethiopian Electric Power] monthly sales come from bitcoin mining, up from nothing a year ago. This accounts for more than all of Ethiopia’s power exports to its neighbours,” says Hiwot Eshetu, EEP’s marketing and business development director.
Because Ethiopia’s grid is not yet developed, much of the dam’s energy would otherwise go to waste. “[Bitcoin miners] have a lot of money to invest, and we need lots of money to develop our grid, so it’s a win-win,” he says, adding that a billion dollars has thus far been invested.
Micro-grids
So far, so rosy. Companies like Gridless are using bitcoin mining to finance and sustain micro-grids, providing affordable electricity to rural areas in Kenya, Malawi and Zambia. The Virunga National Park’s hydro-powered bitcoin mine in Democratic Republic of Congo showcases the sector’s potential for sustainability by using mining revenue to fund conservation efforts.
But there are concerns Africa’s nascent power-production capacity will be leapt on by deep-pocketed crypto operations, with governments tempted by the cash on offer. Angola outlawed cryptocurrency mining operations in a bid to safeguard national energy security, with a bill passed in February 2024.
The Africa Report
