The country’s leading electricity producer has launched a general invitation to Bitcoin miners who want to take advantage of its renewable energy facility near the capital Nairobi.
Kenyan energy company KenGen has appealed to Bitcoin (BTC) miners to come forward and purchase its excess renewable energy capacity.
KenGen claims that 86% of its power is generated from renewable sources, mostly geothermal from underground heat sources in the Great Rift Valley. Local media outlet The Standard reported that KenGen has space in its new Olkaria industrial park, near its flagship geothermal power plant, that could be rented out to Bitcoin miners.
KenGen’s acting director of geothermal development, Peketsa Mwangi, said his company was ready and willing for miners to call Kenya home:
“We will have them here because we have the space and the power is close by, which helps with stability.”
Despite his enthusiasm, there have yet to be any reports of miners wanting to go to Kenya.
About KenGen
The Cambridge Bitcoin Electricity Consumption Index (CBECI) suggests that the East African nation currently hosts no known Bitcoin mining operations, but appears to be ideal for miners due to the estimated potential capacity of 10,000 megawatts (MW) of geothermal energy in the region.
KenGen is currently running at a maximum generation capacity of 863 MW, after installing another geothermal power plant in April, according to Kenyan financial news media Capital FM.
Benefits for Kenia
By inviting miners to the country, KenGen can accomplish several goals at once. It can increase the environmental sustainability of miners, which has been the subject of much scrutiny around the world. Mining consumes 119.5 terawatt per hour (TWh) a year, more than the Netherlands, according to the CBECI. Only 31 countries consume more energy.
It may also drive demand for further development of KenGen’s power grid to increase total supply and reduce cost. Kenya currently ranks 12th among the countries with the most expensive electricity in the world, where a kilowatt per hour (KWh) costs about USD 0.22, according to Statista.
The high cost of electricity in the country may be due to its rate of electrification. In 2020, only about 70% of the population had access to the centralized network, according to the World Bank. Energy grid tracker Energypedia says the high cost of connecting to the grid in Kenya is a “major obstacle” to its expansion.
The Kenyan government could also enjoy increased revenue through miners’ fees and even taxes. The government of Kazakhstan, for example, is poised to collect up to $1.5 billion in revenue from miners over the next five years, even though it only raised $1.5 million in the first quarter of 2022.
Kenya enjoys an especially high cryptocurrency adoption rate due to its peer-to-peer transaction volume.
The Central Bank of Kenya (CBK) has been exploring its options for a central bank digital currency (CBDC) since last year. In February, the CBK stated that the advantages of using a CBDC were lower fees and faster transfer rates.
By Audy Castaneda
