Mining Bitcoin and Providing Electricity to Local Communities

Mining the popular cryptocurrency “Bitcoin” is generating income and providing electricity to local communities in Zambia.

In the heart of Zambia, where the Zambezi River roars through a verdant landscape, an unusual partnership is unfolding. A small hydroelectric plant, struggling to keep up with operating costs, has teamed up with a Kenya-based company, Gridless, to introduce an innovative solution: mining Bitcoin.

The potential of this partnership is vast, not just for the parties involved but also for the local community, which will benefit from a stable supply of electricity despite the departure of the Bitcoin miners.

The humming of the Zambezi fills the air as millions of liters of water cascade over rocks and vanish into the ravines. But in the shadow of the Zambian bush, another sound vibrates through the trees – the quiet murmur of Bitcoin mining.

"Now, this is the sound of money!" exclaims Phillip Walton with a smile, as he gazes at a shipping container housing 120 computers. These devices are diligently processing massive amounts of information through intricate calculations, ultimately verifying the generation of Bitcoin.

In return for their efforts, the machines are automatically credited with Bitcoin from the network.

We are in the far northwestern part of Zambia, close to the border with the Democratic Republic of Congo. Of all the Bitcoin mines I've visited, this one is perhaps the strangest. Electronics and water contraptions don't usually go together, yet it's the proximity of the river that entices the Bitcoins here.

Philip's mine is directly connected to a hydroelectric plant that channels a portion of the Zambezi's flow through large turbines, continuously generating clean electricity.

And what's crucial for Bitcoin mining – it's cheap.

So cheap that it made perfect economic sense for Philip's company to transport a container filled with delicate Bitcoin mining computers along narrow, potholed roads, 14 hours from the nearest town, to set up shop.

Each machine generates about $5 per day, or more if the price of coins is high, and less if it decreases.

Every so often, Philip checks his smartwatch – the main screen displays the fluctuating line of the dollar value of Bitcoin.

Currently, a single Bitcoin coin is worth about $83, but Philip mentions that they can still profit even if the price of Bitcoin falls, thanks to the low energy costs in this country and the partnership with the energy company.

"We realized that to have better economics in mining Bitcoin we had to cooperate with the energy company here and give them a share of the revenue. The reason we are willing to come all the way here, in such a remote place, is because it allows us to provide cheaper energy," he explains.

The Zengamina hydroelectric plant is large, but technically it's a mini-grid – an autonomous island of energy for the surrounding community.

It was built in the early 2000s thanks to $3 million raised from charitable donations. British-Zambian Daniel Rea manages the plant after his missionary family spearheaded the construction project, primarily to supply power to the local hospital.

The plant provides electricity to about 15,000 people in the vicinity, but the project couldn't cover its costs due to slow adoption by the community.

Permitting Bitcoin mining has helped their operations and brought a visible transformation to the enterprise.

"Every day we were losing more than half of the energy we could produce, which meant we weren't making enough to cover our operating costs. We needed a large energy consumer in the area, and that's where the incredible partnership with Gridless came into play," says Daniel.

Bitcoin mining now covers about 30% of the hydroelectric plant's revenue, allowing them to keep prices low for the local population.

The concepts of Bitcoin and its economy are not part of the daily thoughts of the residents of Zengamina.

The town, a few kilometers from the hydroelectric plant, is composed of a few dozen small buildings clustered around an intersection with no name.

Only one store has a refrigerator, and groups of children gather around the shared computer, selecting songs to be played loudly, making the adults frown.

Although the hydroelectric plant was commissioned in 2007, it took several more years to connect it to the local city and then even more time to connect individual homes and businesses.

So some people, like barber Damian, are still enjoying the novelty of being connected to the electrical grid just a year and a half later.

"Before I had electricity, I had nothing and I couldn't do anything. When I got electricity, I bought everything at once," says Damian.

And he's not exaggerating. In the evenings, his small barbershop transforms into a bright spot, with a TV playing music videos, festive lights strung everywhere, and the buzz of his clippers. Like butterflies drawn to light, young people swarm into his shop as if it were a youth center.

"The energy supply has changed my life," he adds with a smile. "The income I