Ethiopia's state-owned electricity provider has dramatically reduced power supplied to Bitcoin mining operations, cutting their allocation by 77% as the country grapples with a shortfall in hydropower generation, according to reports.
Power Cuts Hit Mining Sector
Ethiopian Electric Power, the country's national utility, has slashed the electricity flowing to cryptocurrency miners after declining reservoir inflows squeezed the nation's generating capacity. The reduction is significant, amounting to more than three-quarters of the power previously channeled to mining firms operating within the country.
The decision reflects a shift in priorities for the utility, which has chosen to redirect available electricity toward residential customers and manufacturing businesses. As water levels feeding the country's hydroelectric plants dropped, officials moved to ensure that homes and industrial operations retained their access to power.
When the water runs low, households and factories come first — miners come last.
A Lucrative but Vulnerable Customer
Bitcoin miners had become an important source of income for Ethiopia's power producer, contributing roughly 35% of the utility's revenue over the past year. That reliance underscores how quickly the mining industry established itself as a major electricity consumer in the East African nation, drawn by the promise of relatively cheap, renewable hydropower.
Ethiopia has increasingly positioned itself as a destination for crypto mining companies seeking low-cost energy, with much of that supply coming from its expanding hydroelectric infrastructure. The Grand Ethiopian Renaissance Dam and other projects have fueled ambitions to attract energy-intensive industries.
Yet the latest power cuts highlight the fragility of that arrangement. Mining operations depend on consistent, uninterrupted electricity, and any reduction in supply directly affects their profitability and ability to operate at scale.
- Miners lost 77% of their allocated power supply
- Crypto mining accounted for about 35% of the utility's annual revenue
- Households and manufacturers were prioritized during the shortage
The situation serves as a reminder that mining ventures tied to seasonal or weather-dependent energy sources remain exposed to supply disruptions, particularly in regions where the balance between economic gain and public need can shift with changing environmental conditions.