From Kenya, Malawi, Ethiopia, among others, Africa is quietly rewriting the Bitcoin narrative -turning stranded power into shared progress. The challenge now is ensuring that this digital gold rush lights up villages, not just server rooms.
By Philip Mwangangi
In the heart of Kenya’s Rift Valley, where steam rises from the earth and turbines hum quietly, a new industry is taking root; not farming, not tourism, but Bitcoin mining. In a country blessed with abundant renewable energy, Bitcoin has become an unlikely catalyst for change. Yet as this novel partnership between crypto and clean energy evolves, so do the questions around its sustainability, ethics, and replicability across Africa.
Geothermal abundance meets digital demand
Kenya, the continent’s geothermal powerhouse, boasts an installed geothermal capacity of 949 megawatts, supplying nearly half of its electricity needs. But this green abundance comes with an ironic twist: too much power, not enough buyers. Infrastructure limitations mean much of the electricity generated, particularly from geothermal plants in the Olkaria fields, is curtailed, wasted in a country where millions still live off-grid.
Enter Bitcoin miners.
Bitcoin mining operations like Gridless Compute have set up next to geothermal plants, capitalizing on the excess energy. These miners act as digital sponges, absorbing surplus electricity and converting it into financial assets.
As Erik Hersman, CEO of Gridless, puts it, “You don’t have big industrial customers here. Bitcoin mining fills that gap.”
This synergy is more than just a quirky tech story, it is a model that may hold answers for Kenya’s, and Africa’s, renewable energy dilemmas.
Economic shock absorber
The financial benefits are tangible. For energy producers like Oserian Development Company, partnering with Bitcoin miners adds a much-needed revenue stream. Payments in Bitcoin allow companies to diversify their income and reinvest in grid expansion or plant maintenance.
In Murang’a County, Kenya, where Gridless also operates hydro-powered mini-grids, the economic ripple effect is clear. Electricity prices have dropped from $10 to $4 per month for local households. For communities long marginalised by national energy planning, this is transformative.
What makes Bitcoin mining particularly appealing is its flexibility. Operations can scale up during low-demand periods and shut down during peak hours, effectively smoothing out energy demand spikes and supporting grid stability; a dream scenario for any utility provider.
Africa’s broader crypto-energy experiment
Kenya is not alone. Across Africa, countries with stranded renewable energy are experimenting with Bitcoin as a bridge to monetisation and electrification.
Ethiopia has become Africa’s Bitcoin mining capital, luring Chinese and Russian firms with hydropower prices as low as $0.03 per kWh. Massive investments, including a $250 million data center deal, are redefining the country’s economic ties with the digital world.
Nigeria is battling unreliable electricity with solar-powered Bitcoin mining, while startups like SunCoin offer portable mining kits in rural areas.
In Malawi and Zambia, mini-grids powered by micro-hydro have begun feeding both mining rigs and homes.
In the Democratic Republic of Congo, Bitcoin mining is helping fund wildlife conservation in Virunga National Park, generating over $150,000 a month to protect endangered species.
These examples underscore the broader promise of Bitcoin mining as a tool for financing off-grid electrification and renewable energy growth; particularly in countries where traditional energy economics have failed to deliver.
The cracks in the crypto model
Still, the approach is far from foolproof.
1. A substitute, not a solution?
Critics argue that Bitcoin mining is a convenient stopgap that distracts from systemic energy reforms.
“Selling to miners removes the pressure to build proper energy storage,” says Jona Stinner of Witten/Herdecke University.
Without storage, renewable energy remains vulnerable to fluctuation and volatility.
2. Environmental Double Standards
While Kenya’s operations are largely green, the same cannot be said for all. In countries like South Africa, where coal still dominates, “green” Bitcoin mining may just be wishful branding. And globally, the crypto industry remains energy-hungry, consuming more electricity annually than entire nations like Poland, according to the Cambridge Bitcoin Electricity Consumption Index.
3. Regulatory grey areas
The legal status of Bitcoin mining remains murky across much of Africa. Some countries, like Angola and Libya, have banned mining altogether, citing grid strain and illicit operations. In Kenya, the government is only now drafting mining regulations, with guidance from foreign crypto firms like Marathon Digital Holdings—a process that raises concerns about sovereignty and transparency.
Can the Model Be Scaled Responsibly?
For Bitcoin mining to become a legitimate tool in Africa’s green energy toolkit, governments and energy companies will need to strike a delicate balance. The current model in Kenya offers a compelling blueprint—green, profitable, and locally anchored. But without robust regulations, community safeguards, and long-term investments in energy storage, the risks of overreliance on mining are real.
Kenya’s energy story is still unfolding, and it is too early to call it a triumph or a trap. What’s clear is that Bitcoin, once dismissed as a digital novelty or environmental threat, is now deeply entwined with Africa’s renewable energy future.
Caution in opportunity
Bitcoin mining in Kenya has exposed a fascinating paradox: the same technology often blamed for energy waste in the West is helping to power progress in Africa. For now, it is a win-win: mining firms get cheap electricity, and rural communities get connected. But whether this synergy can endure, or whether it delays more permanent solutions, will depend on the next steps taken by governments, investors, and communities alike.
If Africa is to harness Bitcoin for sustainable development, it must do so with eyes wide open.
Sources: Christian Science Monitor, EMURGO MEA, Greenpeace, Bloomberg, KenGen, Cambridge Bitcoin Index.
