South Africa’s national electricity utility is exploring an unconventional way to monetise excess power: selling it to Bitcoin miners.
Speaking at the BizNews Conference 2026 in Hermanus, Eskom Chairman Mteto Nyati revealed that the company is considering supplying surplus electricity to Bitcoin mining companies operating in South Africa.
The proposal comes at a surprising moment for the country’s energy sector. After more than a decade defined by power shortages and rolling blackouts, Eskom is now dealing with a new challenge — periods of excess electricity during the daytime.
Nyati said the utility wants to sell this unused capacity at discounted rates to energy-intensive industries such as cryptocurrency mining.
Why Eskom Suddenly Has Excess Power
The surplus power is largely the result of rapid solar adoption across South Africa.
In recent years, households and businesses have installed rooftop solar panels at an unprecedented rate to protect themselves from unreliable grid supply. As a result, demand for Eskom’s electricity drops significantly during the middle of the day when solar generation peaks.
This creates what energy analysts call the ‘duck curve’, a situation where electricity demand dips sharply during daylight hours before rising again in the evening.
However, Eskom’s coal and nuclear plants cannot easily switch production on and off. This leaves the utility generating electricity that has no immediate buyers.
According to Nyati, selling this excess electricity could create a new revenue stream while ensuring that power generation assets remain productive.
Why Bitcoin Miners Are Interested
Bitcoin mining is one of the most electricity-intensive digital industries.
Mining involves large networks of specialized computers verifying transactions on the Bitcoin blockchain. These machines run continuously and require vast amounts of electricity.
Because of this, mining companies are constantly searching for cheap and flexible energy sources.
Nyati noted that industries like Bitcoin mining “did not exist 20 years ago”, but they are now becoming major drivers of global electricity demand
In several countries, miners are increasingly being used as flexible energy consumers.
For example:
- In Texas, mining companies absorb surplus renewable energy.
- In parts of Northern Europe, miners shut down operations during peak grid demand to stabilize power networks.
This “interruptible load” model allows power utilities to sell electricity that would otherwise be wasted.
Eskom’s Financial Recovery Strategy
The mining proposal is also part of Eskom’s broader financial restructuring.
The utility is currently pursuing a cost-reduction strategy aimed at eliminating R112 billion (about $6 billion) in expenses over the next five years.
Reducing operational costs and creating new revenue streams is essential for Eskom, which has faced mounting debt and infrastructure challenges for years.
Nyati has also indicated that Eskom is exploring other energy-intensive industries, including:
- Artificial intelligence data centres
- Cloud computing infrastructure
- High-performance computing facilities
These sectors require massive amounts of electricity and could help stabilize demand for the national grid.
What This Means for Africa’s Energy and Crypto Markets
If Eskom proceeds with the plan, it could mark a significant shift in how African energy markets interact with the global digital economy.
Africa has several characteristics that could make it attractive for crypto mining:
- Large untapped renewable energy potential
- Periodic surplus electricity in some regions
- Growing digital infrastructure investment
Countries like Ethiopia, Kenya, and Morocco have already attracted interest from crypto mining firms due to relatively low energy costs.
South Africa’s entry into this space would signal that African utilities are beginning to view digital infrastructure as a strategic industrial sector.
A Global Trend: Energy Meets Digital Infrastructure
The idea of pairing surplus electricity with crypto mining is not unique to South Africa.
Across the world, governments and utilities are experimenting with similar strategies:
- Iceland and Norway use excess hydroelectric and geothermal power for mining operations.
- The United States has become one of the world’s largest Bitcoin mining hubs thanks to access to cheap energy in states like Texas.
- Several Latin American countries are exploring mining as a way to monetize renewable energy.
This trend reflects a broader shift in global energy markets.
As renewable generation grows, power systems increasingly experience periods of surplus electricity. Industries that can consume large amounts of energy on demand, such as crypto mining and AI computing, are emerging as new industrial partners for utilities.
Challenges and Regulatory Hurdles
Despite the potential benefits, Eskom’s plan still faces several obstacles.
First, regulatory approval will likely be required from South Africa’s National Energy Regulator (NERSA) before large-scale energy contracts can be signed.
Second, critics argue that prioritizing energy for cryptocurrency mining could be controversial in a country that has struggled with electricity shortages.
Finally, building large-scale mining facilities would require new transmission infrastructure and private investment.
For now, Eskom’s proposal remains at the exploration stage.
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The Bigger Picture
What once seemed unlikely, a power utility selling electricity to cryptocurrency miners, is increasingly becoming part of the modern energy landscape.
As global demand for digital infrastructure grows, electricity producers are beginning to see technologies like Bitcoin mining, artificial intelligence, and data centres as potential anchors for future energy demand.
If Eskom moves forward with the plan, it could position South Africa at the intersection of Africa’s energy transition and the global digital economy.
