Ethiopia cuts electricity to Bitcoin miners by 75% amid hydropower shortages

Ethiopia has reduced electricity supplies to its Bitcoin-mining industry by 75%, leaving operators with only 23% of their contracted power. The decision follows a 20% reduction in water inflows into hydroelectric reservoirs caused by the El Niño weather phenomenon.

Bitcoin-mining companies have become a significant economic pillar for the nation, accounting for approximately 35% of Ethiopian Electric Power (EEP) revenue and consuming nearly one-third of the country’s total electricity production. Despite this revenue, EEP Chief Executive Officer Ashebir Balcha stated that the utility is throttling supply to energy-intensive mining facilities to prioritize electricity for households and manufacturers, particularly as half of the population still lacks power access.

Ethiopia currently has power-purchase agreements with 39 mining companies, 31 of which are operational. While contracts originally committed EEP to supplying at least 98% of agreed power, the utility plans to reassess the situation in October. Further cuts to miners or limits on electricity exports to neighboring countries may occur depending on reservoir water levels.