Ethiopia's Grand Renaissance Dam: A New Frontier in Bitcoin Mining
According to Crypto News Flash, Ethiopia has ingeniously harnessed its vast hydropower resources from the Grand Ethiopian Renaissance Dam (GERD) for Bitcoin mining. This innovative approach has resulted in 18% of Ethiopian Electric Power’s revenue being generated through digital assets. The country is effectively transforming unused energy into a profitable venture, with last year alone seeing an expenditure of $1 billion on Bitcoin mining activities—surpassing earnings from electricity exports to neighboring countries.
The Ethiopian government has entered contracts with 25 Bitcoin miners, generating millions within months and attracting international crypto investors eager for cost-effective solutions. With electricity costs at approximately 3.2 cents per kilowatt-hour, among the lowest globally, Ethiopia is becoming a burgeoning hub for cryptocurrency operations due to this influx of foreign investment.
This initiative not only boosts economic growth but also supports environmental projects across Africa by integrating renewable energies like those powering microgrids that electrify rural communities in Kenya and Zambia. Similarly, Congo's Virunga National Park leverages hydroelectric power-driven Bitcoin mining to fund local businesses such as cocoa processing while maintaining infrastructure and paying staff salaries.
African nations are demonstrating how sustainable energy sources combined with cryptocurrency ventures can drive significant socio-economic development worldwide. As reported by CNF, global bitcoin miners earned $5 billion in 2023 alone and reinvested $3.6 billion back into developing infrastructure and hardware—a testament to the transformative potential these initiatives hold for green energy policies internationally.
Sources:
