Erik Hersman, co-founder of Gridless Mining, discusses using spare power from independent power producers in Africa for bitcoin mining. They explore negotiating power prices with independent power producers and highlight the challenges and opportunities of using solar installations for mining in South Africa. They also discuss community involvement, expansion plans, and their interest in exploring opportunities in South Africa.
Gridless mining utilizes spare power from independent power producers in Africa to set up bitcoin mines, bringing economic opportunities to excluded communities.
Gridless mining adopts a revenue sharing model with power producers, aligning incentives for mutual benefits and risk sharing.
Deep dives
The Concept of Gridless Mining in Rural Africa
Gridless mining is a concept that aims to bring affordable energy to rural communities in Africa through the use of microgrids. This initiative, which started in Kenya and now operates in Kenya and Malawi, partners with independent power producers who have excess energy during off-peak hours. By utilizing Bitcoin mining, which can be geographically agnostic, gridless mining helps stabilize the grid and generate revenue for these microgrids. Additionally, this initiative brings economic opportunities to communities that are often excluded from mainstream economic activity.
Establishing Partnerships and Revenue Sharing
In order to establish partnerships with power producers, gridless mining educates them about the concept of Bitcoin mining and how it can benefit both parties. The revenue sharing model is typically adopted, where the power producer takes a percentage (between 25 and 35%) of the earnings from Bitcoin mining. This model aligns the incentives of both parties and allows for mutual benefits. While the power price varies depending on the price of Bitcoin and the energy production costs, revenue sharing ensures that both parties share in the risks and rewards of the operation.
Technical Challenges and Possibilities for Solar Installations
Setting up a successful Bitcoin mining operation in rural areas comes with technical challenges. Good infrastructure, proper ventilation, and efficient cooling systems are essential for the smooth operation of the mining facilities. While gridless mining primarily relies on hydroelectric power, it can be adapted to solar installations as well. Solar users who have excess power during certain hours of the day can utilize low-efficiency miners to make use of their surplus energy. This not only optimizes solar energy utilization but also provides an alternative form of currency (Bitcoin) that holds its value and offers potential financial benefits.
Erik Hersman, co-founder of Gridless Mining, explains how the company is using spare power from independent power producers in Africa to set up bitcoin mines, and explores whether private solar power in SA can be turned to profit. Moneyweb Crypto news articles
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