- Bitcoin mining helps fund hydropower and lower energy costs in rural Zambia.
- Gridless uses surplus renewable energy to boost local economies across Africa.
In Zambia’s remote Zengamina region, Bitcoin mining is emerging as an unexpected source of economic growth, benefiting the local hydroelectric plant that powers 15,000 residents. The mining operation, which harnesses renewable hydropower, is lowering electricity costs for the community while supporting a sustainable energy model.
This initiative is made possible through a partnership with Gridless, a Kenyan-based company specializing in decentralized mining operations.
Turning Wasted Hydropower into Profit
Zengamina Hydro, a mini-grid built with charity donations in the early 2000s, was initially designed to supply electricity to a local hospital and nearby communities. However, by 2020, the plant was struggling financially due to underutilized capacity. That changed when Gridless proposed using the facility’s excess energy to mine Bitcoin, turning wasted power into a valuable resource.
BBC News reports from a remote community of 15,000 people in the far north-western tip of Zambia relying on hydroelectric power, “The bitcoin mine now accounts for around 30% of the plant’s revenue allowing them to keep the prices down for the local town”pic.twitter.com/hh0V2mKsKf
— Documenting ₿itcoin
(@DocumentingBTC) March 25, 2025
Daniel Rea, the British-Zambian manager of Zengamina Hydro, explains, “We were wasting over half of the energy we could generate. We needed a major power consumer, and that’s where Gridless came in.” With this innovative collaboration, the hydroelectric plant began selling its surplus power to the Bitcoin mining operation, with Gridless agreeing to share its profits with the plant.
Gridless operates a shipping container equipped with 120 specialized Bitcoin mining computers, known as ASICs, that solve complex mathematical problems to validate Bitcoin transactions. In exchange for their work, the company receives Bitcoin rewards.
Each mining machine earns about $5 daily, with profits varying according to Bitcoin’s market value. With Bitcoin currently priced at around $80,000 per coin, the mining operation is highly profitable. Even when prices drop, the low electricity costs help maintain profitability.
Transforming the Community Through Renewable Energy
The introduction of Bitcoin mining has had significant benefits for the Zengamina community. With increased revenue from the mining operation, Zengamina Hydro has been able to provide affordable electricity for residents. This has greatly improved living standards, as locals no longer have to rely on costly or unreliable energy sources.
400 new households (2000 people), and ~20-30 businesses, have electricity since Gridless got to site.
Our energy partner, in conjunction with another grid extension investor, have now been able to expand to a lot more households and businesses off of this one 700kW site.
— Gridless (@GridlessCompute) March 25, 2025
Damian, a small business owner who runs a barber shop in town, expressed the positive changes he has experienced. He shared that before electricity was available, his shop was dark and isolated.
However, since the introduction of stable power, his shop has flourished. The reliable electricity now enables him to operate his equipment, cover school fees, and support his family.
Similarly, sisters Tumba and Lucy Machayi recall how their lives were transformed after the power grid was expanded.
“Before we got power, this place was just the bush,” Lucy says.
Now, we can charge our phones, access mobile networks, and stay connected with the outside world.
The addition of electricity has also allowed locals to enjoy modern conveniences such as refrigeration and entertainment.
Future Prospects for Zengamina’s Hydropower and Bitcoin Mining
While the Zengamina operation has been successful, it’s not a long term solution. Zengamina Hydro has secured funding to expand their operations and sell excess power to the Zambian grid. Once that happens, the need for Bitcoin mining at the site will cease and Gridless will move its operations elsewhere.
But Gridless isn’t slowing down. They currently have six mining sites across 3 African countries and have big expansion plans. Janet Maingi, co-founder of Gridless, says:
We will build our hydroelectric plants to mine bitcoin and bring electricity to rural areas
Next up for the company is to raise significant funding to build small-scale hydroelectric plants across Africa and tap into the untapped renewable energy resources.
In other parts of Africa, similar models are already underway. In Virunga National Park, DRC, Bitcoin mining using hydroelectric energy is funding wildlife conservation projects. These projects show a new approach to the environmental concerns around bitcoin mining and how the industry can be used to support sustainable energy practices.
Meanwhile, the Guatemalan Blockchain Association is proposing to use methane from landfills to power Bitcoin mining, addressing waste, fire risks, and emissions. As discussed by ETHNews, capturing methane will reduce pollution, extend landfill lifespans, and lower fire hazards.
This model of using surplus renewable energy for Bitcoin mining could change the energy landscape in Africa, addressing energy inefficiencies and stimulating local economies. Bitcoin mining has been criticized for its high energy consumption but with the right approach, operations like Gridless are proving it can be a positive force for both the community and the environment.
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