Power Play: KenGen’s Renewable Energy Bounty
KenGen, a leading energy provider in Kenya, has taken an interesting leap into the cryptocurrency world by inviting Bitcoin (BTC) miners to capitalize on its abundant renewable energy. With a staggering 86% of its energy sourced from renewable means—primarily geothermal from the Great Rift Valley—KenGen is ready to roll out the red carpet for miners searching for an eco-friendly energy option.
Mining for Gold… Or Electricity?
The company has announced its readiness to rent out space at its newly developed industrial park in Olkaria—just a stone’s throw from its flagship geothermal plant. Being close to a power source can stabilize operations for miners, according to Peketsa Mwangi, acting director of geothermal development at KenGen, who said,
“We’ll have them here because we have the space and the power is near, which helps with stability.”
Energy Capacity vs. Mining Operations
However, despite KenGen’s hospitality, Bitcoin miners have yet to flock to Kenya. According to Cambridge’s Bitcoin Electricity Consumption Index (CBECI), the nation currently lacks any known Bitcoin mining operations. Still, with approximately 10,000 MegaWatt (MW) of potential geothermal energy at its disposal, Kenya seems primed for mining ventures.
The Price is Right… Or Is It?
KenGen’s existing operations boast a maximum generating capacity of 863 MW, following the setup of another geothermal power plant in April. However, enticing miners isn’t just about having power; it’s also about pricing. Kenya’s electricity tariffs rank among the highest globally, approximately $0.22 per kilowatt-hour (KWh). This figure raises eyebrows, especially since only 70% of the population had access to centralized grid power as of 2020, according to the World Bank. If mining can help stabilize costs and drive infrastructure improvements, it may boost Kenya’s energy appeal.
Coalitions: Support for Sustainability
One fascinating angle to this story is the potential for KenGen to enhance miners’ environmental sustainability. Mining practices receive frequent scrutiny, with Bitcoin mining using around 119.5 Terawatt-hours (TWh) annually—more than the entire energy consumption of the Netherlands! KenGen’s renewable energy solution could help miners improve their eco-footprint while simultaneously expanding the local energy supply.
A New Revenue Stream?
Kenya could potentially benefit from not only attracting miners but also from the resulting revenue through taxes and fees. Consider Kazakhstan, which anticipates generating up to $1.5 billion from mining in the next five years. While the Kenyan government may not project such lofty gains just yet, every little bit helps, especially in a country aiming to boost its economic prowess.
Embracing Crypto Culture
Interestingly, Kenya boasts a robust rate of crypto adoption, evidenced by the volume of peer-to-peer transactions. With the Central Bank of Kenya (CBK) exploring options for a central bank digital currency (CBDC) since last year, the local government appears open to innovations that could facilitate faster transactions and lower fees. So, as KenGen paves the way for Bitcoin miners, it might just be the beginning of a new era of energy and cryptocurrency in Kenya.
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