Why cryptocurrency firms want to operate in KenGen's geothermal fields | Standard Mediawww.standardmedia.co.ke/business/business/article/2001444539/why-cryptocurrency-firms-want-to-operate-in-kengens-geothermal-fields
149 sats \ 9 comments \ @KenyaCoin 5 May 2022 bitcoin
write
preview
related posts
20 sats \ 0 replies \ @BTCMiner 5 May 2022
Just as there was concern over so much hashrate capacity existing in China (before they banned bitcoin mining in China), there now should be growing concern that there could be too much hashrate capacity in the U.S. Bitcoin mining must not just be geographically distributed, but geopolitically distributed as well. BitFinex is one such organization that is concerned:
Ardoino reiterated that #Bitfinex and #Tether's main aim with the new venture is to ensure that the Bitcoin network's hash rate, or computing power, has geopolitical diversity. "Our mission is to decentralize the spread of bitcoin mining geographically and politically," he said.
https://twitter.com/TheBlock__/status/1507358231529730080
https://twitter.com/paoloardoino/status/1507372008245547017
reply
20 sats \ 2 replies \ @BTCMiner 5 May 2022
Geothermal is the only renewable energy resource that provides baseload power that is available 24 x 7 x 365
[Larger image] [Source]
reply
25 sats \ 1 reply \ @nout 5 May 2022
What do you mean by baseload power? Hydro is also available full time...
reply
10 sats \ 0 replies \ @BTCMiner 5 May 2022
Hydro can be seasonal, or affected by drought.
reply
10 sats \ 1 reply \ @KenyaCoin OP 5 May 2022
reply
0 sats \ 0 replies \ @KenyaCoin OP 5 May 2022
This news is proof that bitcoin provides the incentive to expand renewable energy.
Kenya currently has too much electric generation capacity, thanks to large investment in renewables (geothermal, hydroelectric generation, and wind). That capacity, plus other generation methods, including thermal (e.g., diesel) is significantly greater than the current demand by the nation's grid.
More geothermal electric generation capacity could be developed ... there's about 10,000 MW of potential generation capacity just in Kenya, and there's a total of 15,000 MW potential throughout the East African Rift system.
[Larger image] Source
But demand for electricity is expected to grow in the country due to a growing economy, which is boosted by a very young population (over half the country's population is under 25 years old).
Kenya had, years ago, planned for expanding geothermal generation capacity to 5,000 MW by 2030. But prospecting for and producing geothermal steam, nonetheless building the geothermal electric generation plants are very capital intensive. And thus these plants do not become feasible until the electricity that will be produced has a buyer. So that goal for 2030 is not likely to be reached, especially with the economic hit that the country has faced during the pandemic.
However, bitcoin is the ingredient that was missing to pull forward the plans to expand the geothermal generation capacity, ahead of demand by the grid. While the electric grid may currently need to access thermal (e.g., diesel) generation capacity during peak hours of each day, that short bit of demand (which may actually be less than 10 or so hours per week) isn't alone enough to justify building additional geothermal electric generation capacity.
But with bitcoin mining, every additional geothermal electric generation plant, which runs 24/7, could have a buyer for that electricity, 24x7!
This proves the promise of bitcoin mining, that:
Bitcoin creates the incentive to expand production of renewable energy
Without bitcoin miners, this geothermal plant might have needed to wait until the nation's economy grew such that there was actual demand for additional electric generation capacity, which is a feasibility requirement before deciding to build an additional geothermal electric generation plant.
reply
0 sats \ 2 replies \ @KenyaCoin OP 5 May 2022
Several cryptocurrency mining firms have approached KenGen seeking to set up a base at its planned energy park.
“We’ll have them here because we have the space and the power is near, which helps with stability,” said KenGen acting Geothermal Development Director Peketsa Mangi.
He did not disclose how many firms have shown interest but said their power requests started at 20 megawatts (MW).
“Their power requests vary, some of them had asked to start with 20MW to be later graduated... crypto mining is very energy-intensive,” said Mr Mangi.
Mr Mangi said the cryptocurrency firms are new investors in the country.
KenGen’s geothermal installed capacity continues to increase as the firm focuses more on green energy sources and scales down on thermal energy.
The planned green park, which will provide industrial, commercial and recreational facilities, targets firms seeking to take advantage of the competitively priced geothermal steam and electricity.
Mr Mangi said the feasibility study for Green Park is almost done. “Within two years, we should be having a park, probably not fully operational but operational.”
Its opening is also in line with the enactment of the Energy Act, 2019 last year, which opened up the power retail market and enabled KenGen to sell electricity directly to other entities.
reply
0 sats \ 0 replies \ @KenyaCoin OP 5 May 2022
Here's another article on this story:
Currently, KenGen supplies about 72% of the electricity consumed in Kenya, with over 80% of this coming from renewable sources. The company has a total installed generation capacity of 1,818MW.
https://bitcoinke.io/2022/05/kengen-to-supply-clean-energy-for-crypto-mining/
reply
5 sats \ 0 replies \ @KenyaCoin OP 5 May 2022
An archive, which may be easier to read:
Why cryptocurrency firms want to operate in KenGen's geothermal fields https://archive.ph/dCr8y <-- Will need to scroll down one the page loads to read the article
reply