Ethiopia is leveraging its hydroelectric power through the Grand Renaissance Dam to power Bitcoin mining and generate 18% of the country’s revenue from digital assets.
Bitcoin mining is being fueled by renewable energy in Africa, helping spur economic growth and fund important conservation projects like the one in Virunga.
Ethiopia Using Bitcoin Mining To Generate Revenue
Ethiopia is leveraging its enormous hydroelectric power, primarily from the Grand Ethiopian Renaissance Dam (GERD) for Bitcoin mining. This has helped the country generate 18% of Ethiopian Electric Power (EEP) income from Bitcoin mining, turning idle energy into a profitable asset. A staggering $1 billion has been spent on mining in the past year, significantly more than earnings from electricity exports.
“Africa’s Crypto Power Play: Where Energy Meets the Blockchain Africa’s got the juice – and crypto’s tapping in. Ethiopia’s Grand Renaissance Dam is flipping unused power into digital gold, with 18% of Ethiopian Electric Power’s sales now coming from Bitcoin mining. That’s a billion bucks invested in a year, outpacing exports to neighboring countries. Elsewhere, mining is funding real impact: micro-grids, lighting up rural Kenya and Zambia, and even Virunga Park in DRC is mining crypto to bankroll conservation. Africa? Keep your eyes on its crypto space in 2025.”
Ethiopia’s Energy Strategy
Ethiopia has secured agreements with over 25 mining businesses, allowing the government to generate millions of dollars in just a few months. The agreements have attracted several international miners to the country and helped it generate revenue from its excess electricity.
Ethiopia’s electricity tariffs are among the most competitive globally, a big draw for miners looking for reasonably priced locations for their Bitcoin mining operations. As a result, Ethiopia has established itself as a leader in Bitcoin mining activity, attracting a flood of investments, particularly from Chinese miners following the ban in China.
The country has emerged as a hub for Bitcoin mining, having generated over $55 million in ten months. The remarkable growth and financial return can be attributed to the country’s abundant energy resources. Kal Kassa, Founder and Educator at Bitcoin Birr, stated,
“Ethiopia is becoming a major hub for Bitcoin mining due to our extremely competitive electricity prices. At just 3.2 cents per kilowatt-hour, our electricity is much cheaper than many other parts of the world.”
Renewable Energy And Bitcoin Mining Are Making A Difference
Combining Bitcoin mining with renewable energy initiatives has also had a profound impact environmentally and socially. Microgrids running on renewable energy have been supplying electricity to rural communities in Kenya and Zambia, enabling developments in highly neglected areas. The famous Virunga National Park in the Democratic Republic of the Congo is using Bitcoin mining to support environmental projects. Virunga makes a significant monthly income through hydroelectric power and uses it to support local businesses, pay staff wages, and maintain the park’s infrastructure.
Several countries are using Bitcoin mining for transformational purposes. This highlights how renewable energy sources combined with Bitcoin and crypto mining operations could help achieve economic development.
As these operations develop and grow, they demonstrate the influence of Bitcoin mining on green energy and economic policy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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