- The country’s biggest energy producer is luring bitcoin miners as it seeks to be a trailblazer in the continent’s growing crypto space
- The company also hopes to capture the attention of top mining firms in Europe and America that could tap the massive reserves within the country
Crypto mining has come under harsh criticism for the massive electricity used to generate new coins and verify blockchain transactions.
The annual energy consumption in the crypto mining industry is estimated to be nearly 119 Terawatt hours. This, if quantified, exceeds the energy consumption of the Netherlands, with only about 30 other countries having a higher consumption, according to data from the Cambridge Bitcoin Energy Consumption Index (CBECI).
KenGen, an energy producer in Kenya, has seen an opportunity in this and is looking to capitalise on it. The company accounts for 88% of the power need of the country which itself boasts a huge geothermal power potential of 10,000 MW spread across the Rift Valley.
KenGen’s energy offer could potentially contribute to overall environmental sustainability
According to Standard, a local news report, the energy monopoly has an industrial park in Olkaria, within the country’s Rift Valley sect, where crypto firms will be allowed to set up stations.
“We’ll have them here because we have space and the power is near, which helps with stability,” the energy giant’s Acting Director said.
The country’s energy powerhouse claims to have the potential to meet miners’ energy demands, which could potentially earn them revenues from taxing clients should the dream materialise.
Kenya’s high electricity cost might be a deterrent to miners
Kenya has the second-highest household electricity cost in the continent and ranks 12 globally, according to data from Statista. The country’s average electricity price is more than that of the US, China and India.
The high price of electricity is reportedly driven by the demand and the government’s rural electrification project that’s been ongoing for a while. This high cost of electricity could be a hindrance to miners that aim to optimise revenues and profits by reducing costs.
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Tagged: Bitcoin, business, crypto blog, Crypto news, Mining