Ethiopia cuts power to Bitcoin miners as El Niño strains hydropower

Ethiopia has cut electricity supplied to Bitcoin miners to 23% of contracted levels after a 20% drop in reservoir inflows strained the country’s hydropower system. Summary Ethiopia has cut electricity supplied to Bitcoin miners to 23% of contracted levels after reservoir inflows dropped 20%. Bitcoin miners consume almost one third of Ethiopia’s electricity and generated 35% of EEP’s revenue last fiscal year. EEP will reassess conditions in October, with further mining cuts or restrictions on electricity exports possible. Saifedean Ammous said global Bitcoin mining electricity use and capital spending may have peaked in 2024 to 2025. Bloomberg reported on Tuesday that El Niño had intensified dry conditions across the East African country, forcing state-owned Ethiopian Electric Power to reduce electricity supplied to mining operations while prioritizing households and manufacturers. EEP CEO Ashebir Balcha said the utility initially lowered electricity deliveries to miners to 75% of their contracted amounts before reducing them to 50% and eventually 23%. The company plans to reassess reservoir and electricity conditions in October. Further cuts remain possible if water levels do not improve, while Ethiopia could restrict electricity exports to neighboring countries if domestic supply comes under more pressure. Bitcoin miners lose access to most contracted power Bitcoin miners have become a large source of demand for Ethiopia’s electricity system after low-cost hydropower attracted operators looking for cheaper energy. Mining companies consumed almost one-third of the country’s electricity output and generated 35% of EEP’s revenue during the previous fiscal year, according to Bloomberg. The latest restrictions therefore affect a customer group that has become financially important to the state power company. Ethiopia’s mining expansion has been built largely around its hydroelectric resources. As crypto.news previously reported, miners were already consuming roughly 600 megawatts of electricity in October 2024, when the country had around 5,200 MW of installed generation capacity. Hydropower supplied most of that capacity, with wind and thermal generation making up the remainder. Ethiopia subsequently expanded electricity generation around projects including the Grand Ethiopian Renaissance Dam while international miners increased their presence in the country. You might also like: Bitcoin miner called $5.68 cost for 50 BTC a loss The importance of Ethiopia to the mining sector was visible in updated research on Bitcoin’s energy mix. Cambridge data covered by crypto.news in August found that hydropower had overtaken natural gas as the largest reported source of electricity for Bitcoin mining. Cambridge researcher Alexander Neumueller partly attributed the change to better survey coverage in hydro-rich markets such as Ethiopia. International operators have expanded capacity to take advantage of the country’s electricity supply. Abu Dhabi-listed Phoenix Group increased its Ethiopian Bitcoin mining capacity to 132 MW in April 2025 after adding a 52 MW facility to its existing operations.