Ethiopia Cuts Power to Bitcoin Miners Amid Hydro Shortfall

Ethiopia has sharply reduced electricity available to data-mining operations, including the country’s growing Bitcoin mining sector, as lower water inflows put pressure on hydropower generation.

Ethiopian Electric Power (EEP) CEO Ashebir Balcha disclosed, saying affected companies were receiving only around 23% of their contracted electricity supply.

The reduction remains in effect, with mining operators reporting continued power restrictions in September.

El Niño Hits Ethiopia’s Hydropower Supply

Ethiopia relies heavily on hydropower for electricity generation.

EEP said water inflows into the country’s dams had fallen by around 20%, with the decline linked to El Niño weather conditions. The utility responded by reducing supply to data-mining companies while prioritising electricity for households and other domestic users.

The restrictions are particularly significant for Ethiopia, which has emerged as one of Africa’s major destinations for Bitcoin mining due to its relatively affordable hydroelectric power.

Bitcoin Mining Has Become a Major Power Customer

Despite the restrictions, mining has become an important source of revenue for Ethiopia’s electricity sector.

Data-mining companies, a segment that includes Bitcoin mining operations, generated about 50.37 billion birr for Ethiopian Electric Power during the past fiscal year.That leaves Ethiopia balancing two priorities: maintaining reliable electricity for domestic users while preserving the foreign currency and revenue generated by Bitcoin mining operations.

For now, miners remain under reduced power allocations as EEP monitors hydropower availability.