Ethiopia’s state utility, Ethiopian Electric Power Corp. (EEP), has significantly reduced electricity supply to Bitcoin and other data-mining companies, cutting power by approximately 75% and leaving miners with about 23% of their contracted electricity.
The reduction stems from lower-than-expected inflows into the nation’s hydroelectric dams, which generate about 95% of Ethiopia’s electricity. Incoming water levels are reportedly tracking at least 20% below expectations, a situation exacerbated by El Niño.
EEP has reported losses of up to 50 megawatts per generating unit due to declining reservoir levels and has adjusted its revenue and supply forecasts. In the past financial year, Bitcoin-mining companies accounted for a substantial 35% of EEP’s revenue, consuming approximately one-third of the country’s total electricity production of 9,730 megawatts. While EEP’s installed generation capacity grew by 23% to 9,730 MW over the past year, capacity utilization fell to 60% against a target of 67%.
Data mining operations generated 50.37 billion birr in the last fiscal year, underscoring the economic significance of this sector to Ethiopia’s power infrastructure. EEP plans to reassess its power supply position in October.
This development highlights the operational risks for Bitcoin mining hubs dependent on hydropower. While the situation in Ethiopia reflects seasonal hydrological changes rather than direct climate change impacts, it serves as a reminder that low-carbon power sources are not always consistently reliable. The reliability of hydropower can be affected by environmental factors, impacting energy-intensive industries.
Uncertainty remains regarding whether this dry spell is an isolated event or indicative of future trends for hydro-dependent mining hubs. The long-term impact of climate events on hydropower availability for mining operations is still unfolding.
The news emerges as BTC USD trades around $76,850, showing a slight decrease over the past 24 hours and a more notable drop over the last seven days. For cryptocurrency market observers, this operational risk in a key mining region may be considered alongside broader macroeconomic factors influencing Bitcoin’s price action.
EEP has stated that it may reassess its position in October. Broader claims about a 2025 permit freeze, tariff reform, or a formal transition plan for crypto mining in Ethiopia are outside the scope of verified facts related to this event.
Broader Context
Source materials place the factual news in this context: Bitcoin miners have spent years pitching hydropower as proof the network can run clean.
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