African Bitcoin startup Gridless Compute is using crypto-mining to bring electricity to rural communities, addressing the continent’s power challenges. Nearly 600 million people in Africa, 43% of the population, lack access to electricity, making innovative solutions crucial. This initiative is highlighted by bitcoinke.
Rural communities are increasingly opting for renewable minigrids, typically ranging from 20kW to 1MW, as an alternative to the traditional power grid. These smaller villages often face difficulties in accessing electricity due to their low consumption levels. Private power providers often find it financially unsustainable to expand their services to regions with limited demand.
The Green Africa Mining Alliance (GAMA) has emphasized the growing requirement for minigrids in Africa to surge from 3,100 in 2021 to 160,000 by 2030. Achieving this goal would necessitate an investment of $91 billion over the next ten years. However, the current pace of development is falling behind, and it’s projected to reach only 44,800 minigrids by 2030.
Gridless, on the other hand, offers an innovative approach
With a $2 million seed investment obtained in December 2022, this startup takes on the role of the main electricity consumer in these areas. It sets up Bitcoin mining operations, which create a continuous need for electricity. Essentially, Bitcoin mining ensures a reliable energy demand even before the rest of the community gets connected.
Gridless partners with renewable energy providers in rural areas, enabling them to fully utilize their energy generation capacity. This collaboration ensures long-term sustainability and provides rural communities with a dependable purchaser for their power, establishing mutually beneficial arrangements.
What’s intriguing is that Bitcoin mining operations possess a distinct advantage in terms of flexibility in location. This characteristic makes them particularly suitable for rural environments, especially when energy sources are abundant and not in high demand. Gridless currently operates in Kenya and is associated with the Green Africa Mining Alliance. It stands alongside QRB in Ethiopia, Trojan Mining in Nigeria, and Sukuma Ventures in Kenya.
Gridless underscores that as electricity demand in a village increases, the involvement of Bitcoin mining can be adjusted or gradually reduced, with a constant focus on prioritizing the needs of the community.
