How Bitcoin Can Expand the Grid in Africa with Erik Hersman - WBD607
The Peter McCormack Show
Peter McCormack
4.7 • 2.8K Ratings
🗓️ 18 January 2023
⏱️ 73 minutes
🧾️ Download transcript
Summary
Erik Hersman is an entrepreneur and the co-founder of Gridless. In this interview, we discuss how half of all Africans are without access to electricity, the affordability issue affecting the rest who do have access, and how Gridless aims to alleviate this situation by helping to build out cheap sources of stranded renewable energy.
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Africa has an energy problem. It has been estimated that the continent has the potential to produce approximately 2.5 million terawatt hours of energy per year from solar and wind energy. To put that into context, the US uses around 4,000 terawatt hours of energy per year. And yet, approximately half of all Africans lack access to electricity. Furthermore, a large number of those with access struggle with the relatively high costs.
There are a multitude of reasons why this situation has been allowed to develop. But, despite the focus of major NGOs and developed nations, the issue is getting worse: whilst access to electricity is increasing around the world, it is declining in sub-Saharan Africa. And, without access to energy, any plans to improve Africa's economic future will always be constrained.
While some have seen this as a tremendous challenge, others have recognised it as a tremendous opportunity. Whilst the issue of stranded renewable energy was being mitigated by Bitcoin mining, the costs for the associated equipment were prohibitively high. That was until last year when the problems that beset the mining industry in the US, opened the doors for those looking to harness the power of Bitcoin mining in Africa when the price of ASICs dropped sharply.
The thesis is simple: Bitcoin miners help subsidise the build-out of mini-grids, providing electricity to dispersed and remote communities. As supply and demand find an economic equilibrium, the Bitcoin miners can be redeployed and the process starts in a new location. It is a market-driven solution that provides a return to all stakeholders. The aim is to catalyse the electrification of Africa. It may result in Africa becoming a new home to Bitcoin miners.
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Transcript
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| 0:00.0 | There's 600 million people in Africa that don't have access to electricity. |
| 0:07.4 | That's a lot, right? |
| 0:08.8 | That's two-thirds of the world's total that don't have access to electricity. It's here. And so what we all should |
| 0:15.4 | be trying to do is focus on how can we help electricity proliferate across this continent. |
| 0:21.8 | Bitcoin mining just happens to be the missing link. |
| 0:24.0 | Hello there from Tulsa in Oklahoma. |
| 0:26.0 | I'm up here making part three of my film series following the money. |
| 0:30.0 | This time I'm looking at Bitcoin Mining and Energy. |
| 0:33.0 | I've been to Dallas, I've been to Austin, |
| 0:35.0 | I've got to go to Houston, but we're up here in Tulsa for a Bitcoin meetup |
| 0:38.0 | and we're going to be seeing the gas flare inside tomorrow. |
| 0:41.0 | Very excited to get this film out for you all. Now anyway |
| 0:44.0 | welcome to the What Bitcoin did podcast which is brought to you by |
| 0:46.5 | Gemini the only place I'm using for buying Bitcoin. I'm your host Peter McCormack |
| 0:50.4 | and today on the show I've got Eric Herman from Gridless. Now this is a remote |
| 0:54.5 | show Eric is based down in Africa. We did actually try and make this show in person a |
| 0:59.4 | couple of times and once I was super sick which was sad because Eric was actually in the UK, but I was laid up with bronchitis and I couldn't barely move. |
| 1:08.5 | So we had to defer it, but we've done this show remotely. |
| 1:11.1 | I know I try and do them all in person, but this is such a cool story. |
| 1:14.0 | Everything that Gridless are doing to try and open up untapped energy opportunities in Africa. |
| 1:19.6 | Now Gridless is working to help install miniids in Africa and places that don't have energy |
| 1:25.0 | and they're using Bitcoin mining to help subsidize these projects. |
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