{"id":600514,"date":"2025-06-29T10:00:00","date_gmt":"2025-06-29T08:00:00","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=600514"},"modified":"2025-06-29T10:00:31","modified_gmt":"2025-06-29T08:00:31","slug":"eskom-bitcoin-mining-plans","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/energy\/600514-eskom-bitcoin-mining-plans.html","title":{"rendered":"Eskom Bitcoin mining plans"},"content":{"rendered":"\n<p>Eskom Group CEO Dan Marokane says South Africa\u2019s state-owned power utility is looking into opportunities to support Bitcoin mining, artificial intelligence, and data centres for its future growth.<\/p>\n\n\n\n<p>Speaking at the BizNews Conference earlier this year, Marokane <a href=\"http:\/\/youtube.com\/watch?v=kwbozt-wxfy\">said<\/a> data centres and Bitcoin mining were fuelling the demand for electricity in the United States.<\/p>\n\n\n\n<p>He said Eskom was heading towards a future where increased competition from renewables, such as self-generation and other independent power producers, will require them to turn down their plants.<\/p>\n\n\n\n<p>While this is good news for load-shedding, it is a concern for Eskom\u2019s long-term future. Marokane said they recorded a 4% decline last year, and expect that to continue for the next 3\u20135 years.<\/p>\n\n\n\n<p>\u201cThe business has to reinvent itself and use part of this baseload that we have in a manner that can help it deal with the remainder of its debt pile that is sitting around our necks.\u201d<\/p>\n\n\n\n<p>In its latest financial results for the six months ended 30 September 2024, Eskom\u2019s outstanding loans, debt securities, and borrowings stood at R403 billion.<\/p>\n\n\n\n<p>Sector regulator Nersa recently revealed that municipal debt owed to Eskom <a href=\"https:\/\/mybroadband.co.za\/news\/energy\/598318-win-for-people-who-pay-for-electricity-in-south-africa.html\">was around R90 billion<\/a>, describing the situation as \u201creaching uncontrollable levels\u201d.<\/p>\n\n\n\n<p>Electricity and energy minister Kgosientsho Ramokgopa warned in June 2024 that if left unaddressed, it could <a href=\"https:\/\/mybroadband.co.za\/news\/energy\/543549-eskoms-r3-1-trillion-municipal-debt-warning.html\">reach R3.1 trillion by 2050<\/a>.<\/p>\n\n\n\n<p>\u201cWe have to be looking at alternatives and there are exciting opportunities around AI and data centres, but also within the space of Bitcoin,\u201d said Marokane.<\/p>\n\n\n\n<p>Bitcoin mining is a process of solving a complex mathematical problem that validates new transactions and secures the blockchain\u2019s distributed ledger against tampering.<\/p>\n\n\n\n<p>Miners compete to be the first to solve a block. As a reward for contributing their computing power to the network, they are paid a \u201cblock reward\u201d \u2014 a set amount of new bitcoin minted with every block.<\/p>\n\n\n\n<p>They also receive any transaction fees people pay when sending funds over the network, although these are typically much less than the block reward.<\/p>\n\n\n\n<p>A new block is created roughly every 10 minutes, and block rewards will end once 21 million bitcoins have been minted.<\/p>\n\n\n\n<p>This system, called proof-of-work, is computationally intensive by design as a security measure. Because it is computationally intensive, Bitcoin\u2019s proof-of-work algorithm is also energy-intensive.<\/p>\n\n\n\n<p>Although less power-hungry approaches have been developed, such as Ethereum and Cardano\u2019s proof-of-stake systems, Bitcoin proponents argue that nothing beats proof-of-work\u2019s security and incentive mechanism.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Electricity prices and Bitcoin<\/h2>\n\n\n\n<p>Because Bitcoin mining is so energy-intensive, electricity is its biggest operational expense. The most profitable miners will be those who pay the least for electricity.<\/p>\n\n\n\n<p>The U.S. Energy Information Administration (EIA) <a href=\"https:\/\/www.eia.gov\/todayinenergy\/detail.php?id=63344\">published<\/a> a report in October 2024 stating that electricity consumption in the country was growing fastest in Texas.<\/p>\n\n\n\n<p>\u201cOne of the main sources of growing demand for power is large-scale computing facilities such as data centres and cryptocurrency mining operations,\u201d the EIA said.<\/p>\n\n\n\n<p>\u201cThese facilities consume large amounts of electricity, both to run their computing equipment and to keep them cool. Some of the larger facilities can consume as much electricity as a medium-sized power plant.\u201d<\/p>\n\n\n\n<p>The EIA said large-load facilities, primarily cryptocurrency mining facilities, but also data centres and some industrial factories, have entered into voluntary curtailment agreements with the Texas grid system operator.<\/p>\n\n\n\n<p>These function similarly to Eskom\u2019s load curtailment programme, where these large users agree to temporarily reduce their power consumption during periods of high demand or low generator availability.<\/p>\n\n\n\n<p>News in September 2023 that Bitcoin mining company Riot Platforms received $32 million (around R570 million) for curtailing its load outraged Texans, who were enduring a heatwave and had been asked not to use air conditioning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Eskom grid under pressure<\/h2>\n\n\n\n<p>While Eskom is contemplating a future of reduced grid demand, it is currently in danger of needing to implement load-shedding.<\/p>\n\n\n\n<p>Eskom reported that between 13 and 19 June 2025, the average level of unplanned outages reached 15,076 MW.<\/p>\n\n\n\n<p>This is above the 15,000&nbsp;MW level it warned would likely result in a minimum of 21 days of stage 2 load-shedding during the winter period.<\/p>\n\n\n\n<p>Eskom published its winter 2025 outlook last month, stating that load-shedding would not be necessary if breakdowns remained under 13,000&nbsp;MW.<\/p>\n\n\n\n<p>Thus far, the state-owned power utility has avoided implementing rotational power cuts, but it has been forced to burn a lot of diesel to run its open-cycle gas turbines (OCGTs).<\/p>\n\n\n\n<p>Its year-to-date OCGT load factor stands at 11.73%, much higher than the 5.78% recorded during the same period last year.<\/p>\n\n\n\n<p>Eskom spent approximately R4.51 billion on fuel for the OCGT fleet, generating 768.64&nbsp;GWh. This is higher than the 378.75&nbsp;GWh generated during the same period last year.<\/p>\n\n\n\n<p>It stated that diesel usage is expected to decline as more units return to service following the completion of long-term repairs and maintenance activities.<\/p>\n\n\n\n<p>Eskom added that, despite the high use of OCGTs, diesel expenditure remains within budget for the current financial year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eskom Group CEO Dan Marokane says South Africa&#8217;s state-owned power utility is looking into opportunities to support Bitcoin mining, AI, and data centres for its future growth.<\/p>\n","protected":false},"author":15,"featured_media":534211,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[92837,44696,27995,40380],"tags":[187,31156,181],"class_list":["post-600514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai","category-cryptocurrency","category-energy","category-trending","tag-bitcoin","tag-dan-marokane","tag-eskom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/600514"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=600514"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/600514\/revisions"}],"predecessor-version":[{"id":600515,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/600514\/revisions\/600515"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/534211"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=600514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=600514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=600514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}