Ethiopia leverages its Grand Renaissance Dam for Bitcoin mining, attracting $1 billion in investment while promoting renewable energy use.
Ethiopia is using its Grand Renaissance Dam (GERD), Africa’s largest hydroelectric project, to promote Bitcoin mining. This move has already proven profitable. The income obtained from Bitcoin mining now represents 18% of the income earned by the Ethiopian Electric Power Company (EEP). Over $1 billion in Bitcoin mining investments have been attracted to Ethiopia in the past year.
Ethiopia has invested $1 billion in Bitcoin mining in the last year. 25 mining companies have partnered with the government. The cheap electricity from the dam is used by these companies. Electricity only costs 3.2 cents per kilowatt in the country. It has one of the lowest electricity prices in the world.
This makes Ethiopia an ideal hotspot for Bitcoin mining. Ethiopia is attracting miners from all over the world. In fact, many miners, especially China miners, are interested. After China banned cryptocurrency mining recently, miners are on the search for new places. With its low-cost electricity, Ethiopia presents in great opportunity to run such operations.
Ethiopia Attracts Foreign Investment in Bitcoin Mining Boom
Foreign investment is flowing into the country’s Bitcoin mining boom. Ethiopia’s government is happy the success has happened. In addition, millions of dollars in deals with mining companies. This money will help in the development of the country.
Not only is Bitcoin mining growing in Ethiopia. Renewable energy is also being utilized for Bitcoin mining in other African countries. Rural areas in Kenya and Zambia are being powered by renewable energy powered microgrids. The electricity and these microgrid cities support local businesses.
Bitcoin mining is helping environmental projects in the Democratic Republic of the Congo. Hydroelectric power is used at Virunga National Park to mine Bitcoin. The money raised goes to local businesses and infrastructure.
This larger trend of Bitcoin mining, which is also opted by Russia, includes Ethiopia. The country is doing Bitcoin mining on renewable energy. This can create new jobs and spur economic growth. Using clean energy sources, it could also help the environment.
Recently, BIT Mining Limited, a leading cryptocurrency mining company, also entered Ethiopia. In the country, the company ended up agreeing to acquire crypto mining data centers at 51 megawatts. In addition, 17,869 top-tier Bitcoin mining machines will also be purchased by BIT Mining. It will also enable the company to improve its mining capacity and operations in Ethiopia. More interest in making Ethiopia a mining hub demonstrates BIT Mining’s move.
But there are problems with these steps. For example, if more Bitcoin mining requires more energy. This could be pressure on Ethiopia’s renewable resources. The country needs to strike balance between economic growth and environmental sustainability.
