Introduction to Ethiopia’s Crypto Mining Policy
Ethiopia has stopped issuing latest permits for electric power supply to data mining corporations, effectively halting the expansion of cryptocurrency mining within the country. This decision comes because the state-owned Ethiopian Electric Power (EEP) says it has reached its limit in meeting latest demand.
Background on Crypto Mining in Ethiopia
The East African nation generated $55 million from Bitcoin mining over a 10-month period in 2024, primarily through agreements with 25 mining corporations. These firms depend on the country’s low-cost hydroelectric power, much of it from the Grand Ethiopian Renaissance Dam (GERD). The dam’s surplus output exceeds local industrial demand, and Bitcoin mining has provided a marketplace for this excess.
Reasons for the Halt
EEP CEO Ashebir Balcha announced, "From our current assessment, access appears to be at capability." The freeze follows a surge in interest from mining corporations, with nearly 20 more firms on a waiting list to operate Bitcoin mining facilities in Ethiopia. The country’s low-cost tariffs and abundant hydropower have attracted these corporations.
Key Facts About Crypto Mining in Ethiopia
- The country has 25 firms already operating Bitcoin mining facilities, with nearly 20 more on a waiting list.
- EEP began selling power to crypto-miners in foreign currency to generate additional revenue, marketing it as a strategy to monetize "stranded power" — surplus electricity generated during off-peak hours.
- In the past fiscal yr, EEP exported nearly 7% of Ethiopia’s generated power, earning $338 million in foreign currency, with crypto-mining corporations amongst the most important contributors.
- Power exports to Kenya and Djibouti are also growing, with Kenya requesting a further 100 megawatts on top of the 200 megawatts it currently receives.
Impact of the Halt
The suspension highlights the strain between Ethiopia’s efforts to monetize excess power and the bounds of its current infrastructure. EEP currently operates 20 power stations with a combined capability exceeding 7,900 megawatts. The Grand Ethiopian Renaissance Dam, scheduled for full commissioning inside two months, will add greater than 5,000 megawatts to the national grid. Despite that, only half of Ethiopia’s population currently has access to electricity, despite national grid coverage spanning over 20,000 kilometers.
Conclusion
The halt on latest crypto mining permits in Ethiopia is a big development within the country’s energy sector. While crypto mining has provided a marketplace for excess power and generated revenue, it has also raised concerns concerning the strain on local supply. As Ethiopia continues to develop its energy infrastructure, it would be essential to balance the needs of various sectors and be certain that the advantages of energy development are shared equitably among the many population. The way forward for crypto mining in Ethiopia stays uncertain, but one thing is obvious: the country’s energy policy will play a critical role in shaping the industry’s trajectory.
