Zambia Bush Solar Energy Powers Digital Coin Growth

Zambezi's Current Powers Digital Coins and Remote Hopes

Far within Zambia's wilderness, a novel sound mingles with the Zambezi River's powerful cascade. It is the high-pitched hum of computers, a noise that Philip Walton of Gridless happily suggests represents financial gain. These machines, housed in a shipping container, form a cryptocurrency mining setup. They perform complex calculations to confirm cryptocurrency exchanges. In return, the network rewards them with the digital currency. This operation sits in Zambia's most distant northwestern extremity, near the Democratic Republic of Congo border, an unusual outpost for such a high-tech venture. The key to its location? The Zambezi itself, or more precisely, the inexpensive, clean hydroelectric power it can generate.

The Unlikely Marriage of Water and Circuits

Electronic equipment and water usually make for a perilous combination. Yet, the nearness of the waterway is precisely what attracted digital currency miners to this remote Zambian spot. Philip Walton’s company, Gridless, based in Kenya, has directly connected its mining operation to a local facility generating electricity from water. This plant channels the powerful flow of the Zambezi through its turbines, producing continuous, clean, and, crucially for the purpose of extracting cryptocurrency, inexpensive electricity. The cost of this power is so low it justified the arduous 14-hour journey to transport the delicate mining computers over rough roads from the closest significant urban area. This strategic move allows the mine to operate profitably.

Economics of a Remote Mine

Each of the 120 machines in the container generates around $5 (£3.90) daily, with earnings fluctuating based on bitcoin's volatile valuation. As of mid-May 2025, bitcoin's market value hovered around 60,000−65,000, a significant figure, though less than its all-time highs. Despite price swings, Philip Walton explains that the low-cost power supply and a revenue-sharing partnership with the local utility provider ensure profitability even when bitcoin’s value dips. He explained their understanding that achieving superior financial outcomes from mining necessitated a collaboration with the local energy supplier, which involved sharing a portion of the income. This willingness to operate remotely stems from the significant advantage of less expensive power.

Zengamina's Power: A Community Lifeline

The Zengamina hydroelectric facility, while substantial, functions as a mini-grid, an independent, standalone energy source for the area's inhabitants. Established in the first few years of the 2000s with $3 million from charitable donations, its initial goal was to provide electricity for the area's medical facility. British-Zambian Daniel Rea, whose family involved in missions led the construction effort, currently manages the location. It currently supplies electricity to roughly 15,000 local people. However, the plant struggled financially due to slow community uptake of electricity. Allowing Gridless to establish their cryptocurrency operation proved transformational. Daniel Rea highlighted that they were letting more than 50 percent of the potential power go unused, meaning lost revenue for operating expenses. The mine became a major power user, a "game-changing partnership."

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Bitcoin's Boost to Local Energy

The digital currency extraction operation currently contributes to roughly thirty percent of the Zengamina facility's revenue. This financial injection enables the plant to keep electricity prices affordable for the nearby settlement. The complex world of bitcoin economics is far removed from the daily lives of Zengamina’s residents. The actual settlement, situated some kilometers from the facility, consists of a small number of simple buildings around a crossroads. Modern amenities are scarce; just a single retail outlet possesses refrigeration. Yet, the hum of the distant crypto mine plays a crucial role in their slowly electrifying lives. This model of using digital currency extraction to subsidise energy costs is gaining traction.

The Slow Spread of Power

Although the water-powered generating station began service during 2007, linking the nearby settlement, followed by private residences and commercial enterprises, took several more years. For some, like Damian, a local barber, the arrival of consistent power just eighteen months prior was life-altering. Damian expressed that before electricity, he possessed very little and felt unable to achieve much; upon its arrival, he acquired all necessities concurrently. His small barber shop, now a brightly lit spot featuring a television and music, has become a social hub. The income from his energised business helps cover educational expenses.

Electricity Transforms Daily Life

For many in Zengamina, electricity is a carefully managed resource. Damian, for instance, uses a single lightbulb for the pair of living spaces within his house. At the town's crossroads, Tumba and Lucy Machayi, who are sisters, often engrossed in their phones, recall a time before reliable power. Lucy stated that prior to the settlement receiving electrical service, the area was little more than undeveloped wilderness. Limited electricity came via minor solar installations. Tumba recounted the absence of refrigeration, television, and cellular reception. Lucy stressed that electrification profoundly altered the existence of the inhabitants, enabling phone charging and communication.

A Temporary Tenant's Departure

Few locals know or are particularly concerned regarding the cryptocurrency extraction facility that helped sustain their power supply. Soon, they will see the container of computers make its rattling journey out of town. The Zengamina power entity obtained substantial funding to expand its reach to additional settlements and, critically, integrate with the country's main power system. This connection, which officially occurred on 1 April 2025, allows Zengamina Power to feed surplus power to ZESCO, the national utility, and draw power when needed. The crypto mine's role in consuming excess energy is not anticipated to remain as financially viable or necessary at Zengamina.

Gridless: A Symbiotic Success

Philip Walton and his team view this development positively. They acknowledge several productive years at Zengamina, pleased with their contribution to the community’s energy stability while making a profit. The Gridless model often involves being a temporary anchor tenant, using "stranded" energy until local demand or grid connection matures. The company has other sites and is not short of locations with underutilised energy potential. Gridless already operates five digital currency mining sites across Africa using renewable energy, with three operational in its first year in Kenya alone.

Expanding Horizons: Mining and Development

North of Zengamina, a similar story unfolds where a different cryptocurrency extraction facility utilizes surplus power originating from a water-driven generation station managed by Virunga National Park, located within Congo. The park states that this operation helps fund vital conservation projects. Gridless itself has more ambitious plans: to build entirely new hydroelectric facilities. These would both extract digital currency while also supplying power to remote regions. Janet Maingi, co-founder of Gridless, confirmed the enterprise is in the process of securing substantial capital, amounting to many millions of dollars, for these "run-of-river" hydroelectric projects, citing Africa's abundant, considerable unexploited water power capacity.

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The Gridless Philosophy

Janet Maingi clarified that a flexible energy system responsive to consumer demand is vital for expandable, cost-effective, and lasting power solutions tailored to African population requirements. Gridless functions as a for-profit business, not a charitable body. The company believes that digital currency extraction is key to securing sustained financial feasibility for those who develop energy projects and their financial backers in these challenging markets. Identifying locations is the easier part; resistance from authorities who view cryptocurrency mining as an energy-intensive, selfish endeavour can be a hurdle. Gridless counters that their motivation consistently involves supplying the entity offering the most favorable price, which they maintain would be the nearby populace.

Africa's Untapped Renewable Potential

Africa possesses substantial untapped renewable energy resources, particularly solar and hydroelectric power. This positions the continent as a potential leader in sustainable digital currency mining. Companies like Gridless leverage this by financing and sustaining micro-grids that provide affordable electricity. The model turns surplus energy, which would otherwise be wasted, into revenue, supporting infrastructure and lowering local electricity costs. This approach has attracted significant investor interest. For instance, Gridless secured $2 million in seed funding to expand its operations across East Africa.

Ethiopia: A New Mining Frontier

Ethiopia has rapidly emerged as a significant player in African digital currency mining. Following China's ban on cryptocurrency mining, operators sought new locations with cheap power. The Grand Ethiopian Renaissance Dam (GERD) provides substantial energy capacity. Astonishingly, by late 2024, 18% of Ethiopian Electric Power's monthly sales came from digital currency mining, a figure that was zero a year prior. This revenue is crucial for developing Ethiopia's national grid. By December 2024, Ethiopia accounted for 2.5% of the total global digital currency mining hashrate, all powered by renewable energy. Mining firm Phoenix Group is expanding its capacity there significantly.

The Challenge of Stranded Energy

"Stranded energy" refers to power generated in remote locations without sufficient local demand or adequate infrastructure to transmit it elsewhere. Digital currency mining operations, with their portable and interruptible nature, can monetise this otherwise wasted energy. This is particularly relevant for gas flaring from oil extraction, where capturing the gas to power digital currency mines can reduce methane emissions significantly compared to routine flaring. Companies like Crusoe Energy and Marathon Digital Holdings are pioneering these "digital flare mitigation" and stranded gas monetisation projects in the US and potentially abroad. This offers an economic upside by converting waste to value.

Navigating a Complex Regulatory Landscape

Rules concerning digital currency extraction across Africa differ widely and are continuously developing. While some nations see the economic potential, others harbour concerns about energy security. Angola, for example, outlawed cryptocurrency mining in early 2024 to protect its national energy supply. Obtaining energy development licences and importing mining hardware can be challenging in some jurisdictions. Despite these hurdles, the development of local solutions for energy infrastructure, sometimes catalysed by digital currency mining, continues to grow. The Green Africa Mining Alliance, with Gridless as a founding member, aims to support new miners on the continent.

Global Scrutiny: Energy Consumption Concerns

Digital currency mining’s substantial energy consumption remains a significant global concern. Estimates suggest the sector consumes power levels comparable to those of whole nations, such as Poland or, by some metrics, accounting for 0.5% of global electricity consumption. This energy demand translates directly into greenhouse gas releases if non-renewable energy is the main input. The CCAF, part of Cambridge University, provides regularly updated estimates. Their revised data for 2022 indicated around 95.5 TWh, lower than initial estimates but still substantial. More recent CCAF estimates for 2025 suggest 138 TWh annually.

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The Environmental Impact Debate Intensifies

Researchers continue to debate the precise environmental footprint of bitcoin. Translating energy use into carbon emissions is complex due to the distributed nature of mining and varying energy sources. A 2025 non-peer-reviewed CCAF study estimated annual greenhouse gas emissions at 39.8 Mt CO2, comparable to Slovakia's emissions. However, investigations also point to digital currency extraction's capacity to aid renewable energy development by utilising surplus wind and solar power, potentially mitigating climate impact if managed correctly. Some recent analyses even suggest a trend towards positive or neutral impacts on renewable integration and grid stability.

Shift Towards Sustainable Mining

There is an undeniable shift towards an energy supply composition that is more environmentally sound for cryptocurrency extraction. The Bitcoin Mining Council reported that in Q4 2022, nearly 59% of global digital currency mining utilised renewable energy sources. More recent estimates, like DARI's BEEST model, suggested that approximately 56.7% of Bitcoin mining was powered by sustainable sources in late 2024. Projects like Zengamina, though a minor component within the worldwide scenario, exemplify how the industry can create value beyond digital coins, especially when harnessing renewables. Africa, with its underdeveloped electrical infrastructure but rich renewable resources, offers unique opportunities for off-grid and micro-grid mining solutions.

The Economics of Mining Hardware and Profitability

The profitability of digital currency mining is a complex equation. Key factors include bitcoin's market valuation, electricity costs, mining hardware efficiency (hash rate), and the network's overall mining difficulty. The "halving" event, which occurs approximately every four years and reduces the reward for mining new blocks, significantly impacts profitability. The latest halving in April 2024 reduced rewards to 3.125 BTC per block. This compels miners to aggressively seek cheaper power and more efficient hardware, like the latest ASIC models from Bitmain and MicroBT. Equipment costs have decreased per unit of hashing power, making newer machines more accessible.

Bitcoin Mining and Grid Stability

Digital currency miners can offer unique benefits to power grids. Their operations are often interruptible, meaning they can quickly power down during peak demand, freeing up electricity for critical needs. This "demand response" capability is valuable for grid balancing. In Texas, miners curtailed significant power during winter storms to stabilise the grid. Similarly, in Paraguay, miners absorb surplus hydropower from the Itaipu Dam, monetising energy that would otherwise be wasted due to transmission constraints. This symbiotic relationship can improve the economics of renewable energy projects by providing a buyer for curtailed (excess) wind and solar power.

The US Perspective: A Shifting Landscape

The United States has become a significant center for cryptocurrency extraction, particularly after China's crackdown. This has led to some conflicts over energy use, especially during periods of high demand. Agreements are emerging where mining giants power down to support the grid, as seen with the Greenidge facility, situated in New York state. The political stance on crypto is also evolving. Former President Donald Trump articulated a vision where digital currency would be extracted, created, and produced domestically. Recent executive orders in early 2025 under a new Trump administration signal a more supportive stance, aiming to foster digital asset technologies and provide regulatory clarity, while also prohibiting Central Bank Digital Currencies (CBDCs).

Air Quality and E-Waste Considerations

Beyond carbon emissions, concerns exist about localised air pollution from fossil fuel power plants supplying digital currency mines. A recent Harvard study linked US digital currency mining to increased PM2.5 particulate pollution in certain areas. Electronic waste is another environmental consideration. The specialised ASIC mining hardware has a limited lifespan before becoming unprofitable or obsolete, contributing to e-waste. Estimates vary, with some studies suggesting an average lifespan of 1.3 years, while others argue it's closer to four to five years based on market data. Responsible disposal and recycling of this hardware are growing concerns.

Infrastructure Challenges in Africa

The success of endeavors such as the one at Zengamina, along with the wider aims of Gridless are set against a backdrop of significant infrastructure challenges in Africa. Many regions suffer from inadequate road networks, insufficient rail, congested ports, and a massive electricity deficit, with hundreds of millions lacking access. Funding for large-scale infrastructure is a major hurdle, compounded by issues like political instability, governance concerns, and a lack of "bankable" projects. Public-Private Partnerships (PPPs) are crucial, but many countries lack the robust frameworks to manage them effectively. Innovative models, like using digital currency mining to de-risk initial energy investments, offer a potential pathway.

The Future: Decentralised Energy and Digital Value

The story of digital currency mining in places like Zengamina hints at a future where decentralised energy solutions and digital value creation intertwine. As Gridless plans to build its own hydro-plants, it exemplifies a move towards vertically integrated operations that control both energy production and its monetisation through bitcoin. This model could supply power to isolated regions that traditional grid expansion might not reach for decades. The key will be balancing the pursuit of profit from digital currency with genuine, sustainable benefits for local communities and the environment. The progression from Zambia's wilderness to the global digital marketplace showcases innovation born from necessity.

A Symbiotic Future for Energy and Crypto?

The evolving narrative of digital currency mining, particularly in energy-rich but infrastructure-poor regions like parts of Africa, suggests a potential for symbiotic relationships. If mining operations can genuinely catalyse renewable energy development, stabilise nascent grids, and contribute to local economies without exacerbating environmental burdens, the industry could establish a niche that is more environmentally sound and advantageous for society. However, this requires careful regulation, transparency, and a commitment from mining companies to prioritise community and environmental well-being alongside profit. The distinctive hum, earlier described as representing financial gain, emanating from Zambia's wilderness could then harmonise with the sounds of sustainable progress.