The idea that Bitcoin mining can facilitate the development of renewable energy is counterintuitive at first. After all, the prevailing view in public discourse around Bitcoin mining is that it’s bad for the planet and has few redeeming qualities.

Gridless is a noteworthy project that is offering an alternative perspective on what Bitcoin mining can do. More importantly, the project presents its case in a simple way. Gridless is a Kenya-based crypto mining company that is using the excess electricity from mini-grid hydro generators to mine bitcoin. The revenue generated from Bitcoin mining helps to reduce or subsidize the cost of electricity.

Around 600 million people in Africa south of the Sahara lack access to electricity, according to the Alliance for Rural Electrification.

Distributed power generation and mini-grids will be crucial in resolving this power access issue, according to Gridless’ Founder Erik Hersman.

Although Africa has a lot of renewable energy potential, efforts to make it accessible to underprivileged populations encounter difficulties because the initial demand for power from those places is insufficient to support the economy.

Hersman stated, “In short, it takes a few years for households to grow from getting electricity, to buying the refrigerators, TVs, and other appliances that use up more energy. The scale-up isn’t quick, which means that you need another buyer of that energy in the interim, or the costs to generate that power are going to be too high for that community to pay for as well, thereby slowing down the uptake even further.”

In a recently issued statement, Gridless said while mini-hydropower plants that generate below 100 KW (kilowatts) are being used so far, the company’s objective is to work with larger plants that can generate 500 KW. 

The Bitcoin mining company stated:

“We’ve been working with mini-grid hydro generators in Kenya on how to use their excess capacity for Bitcoin mining, which also significantly reduces the cost of power to the local community. Small <100kW sites now, working towards 500kW soon.”

In the meantime, it’s said that the Gridless approach, if widely implemented, could potentially see Kenya and the African continent, in general, become a significant Bitcoin mining hub in addition to helping cut local Kenyan villages’ electricity prices.

“This business model serves as a welcome decentralization of the overly centralized mega-site Bitcoin mining that goes on today. Not only does it move some hashing power to Africa, but it also further distributes hashing to smaller sites,” Erik Hersman stated in a blog post.

Additionally, at scale, the Gridless approach is also beneficial for the Bitcoin network. It increases the decentralization of Bitcoin mining while also improving Africa’s representation in mining activity.

There is still a long way to go with regard to understanding the best ways to deal with Bitcoin’s energy demands. Nevertheless, when confronted with Gridless’ vision, it’s remarkable to consider that what first appears as a mere payment network is capable of facilitating such transformation.