Bitcoin Mining Boosts Zambian Hydroelectric Plant, Transforms Local Economy
March 26, 2025
Local residents, such as barber Damian, have experienced significant lifestyle changes due to the introduction of electricity, enabling them to enhance their businesses and improve communication.
A bitcoin mining operation in northwestern Zambia is powered by the Zengamina hydroelectric plant, which was built in the early 2000s with $3 million in charity donations.
This partnership with Gridless has transformed the plant's revenue, with the bitcoin mine now accounting for about 30% of its income, allowing for lower electricity prices for the local community of around 15,000 residents.
Despite the benefits, the hydro plant has faced challenges with unused electricity due to a lack of demand, which was addressed by Gridless's introduction of a mobile bitcoin mining unit.
Looking ahead, Gridless plans to expand by building its own hydro plants to continue mining bitcoin and providing electricity to more rural areas, tapping into Africa's abundant hydro potential.
The success of this model has sparked interest in other regions, with projects in the Democratic Republic of Congo and Ethiopia exploring similar strategies to monetize excess energy.
However, as the Zengamina plant prepares to connect to the national grid, the economic viability of the electricity for Gridless may diminish, prompting the company to seek new sites with stranded energy.
Past incidents of bitcoin mining causing strain on public energy grids in other countries highlight the need for clear agreements to balance energy demands with mining activities.
This model of integrating bitcoin mining into energy projects is seen as a potential solution for the over 65% of small-scale energy systems in sub-Saharan Africa that are commercially unviable without external support.
While the approach holds promise, concerns exist regarding potential competition for electricity between local users and miners, especially during periods of high Bitcoin prices.
Despite facing criticism for its energy consumption, Gridless emphasizes its commitment to balancing local community needs with profitability.
Gridless envisions itself as a temporary player in the region, planning to withdraw once local energy demand increases and the hydro plant connects to Zambia’s national grid.
Summary based on 4 sources
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Sources

BBC News • Mar 25, 2025
Bitcoin in the bush - crypto mining brings power to rural areas
BBC News • Mar 25, 2025
Bitcoin in the bush - crypto mining brings power to rural areas
Africa.com • Mar 27, 2025
How Bitcoin Mining is Funding Power in Rural Zambia - Africa.com
crypto.news • Mar 26, 2025
How a shipping container and Bitcoin saved a struggling African hydro project