State-owned Ethiopian Power (EEP) has announced its intention to shut down all crypto mining operations in the country. According to the body, amid growing concern, there are plans for a phase-out of all activities related to crypto mining.
Ethiopia’s electricity said the move has become necessary after increasing public pressure on the increased energy burden brought by these crypto-related data centres. This development caused agitation within the country, causing the public to express their frustration.
Crypto mining companies have begun setting up stores in Ethiopia over the past year due to low energy tariffs. The government also wants to address foreign investment, but concerns about rising energy needs have led the head of the EPP to rethink things.
Ethiopia’s electricity to phase out crypto mining operations
A recently published Ethiopia Energy Outlook 2025 report revealed that cryptocurrency mining is on track to consume roughly a third of Ethiopia’s total output this year. The report highlighted that this level of consumption could undermine key sectors, particularly areas that suffer from blackouts and diesel dependence.
According to a report prepared by state-owned enterprises and the national Petroleum Energy Agency, the data center is expected to consume 8 terawatt hours (TWH) of electricity this year, and it has questioned whether such usage is appropriate.
Crypto mining is considered a forex tool, but the report notes Ethiopia’s lack of efficient electricity and discusses the argument that energy consumption is sparking.
“Because the balance between supply and demand is strict, whether diesel generators can better use electricity for exports, general electrification, or other productive applications, such as pumping water in the widespread use of water and agricultural sectors, remains an open question,” the report read.
However, the EEP has decided to make a decision to support the majority of the country.
EEP will gradually suspend contracts with data mining companies
According to a statement from EEP CEO Asheber Balcha, the electricity regulator will no longer be taking on new contracts in the data mining space. “There are no new contracts in the field of data mining, and we are not interested in continuing existing contracts either,” Barsha said in the annual performance review, which will be held on Friday, August 7th. However, he added that the sector is not part of the EEP’s long-term strategy.
The EEP decision also reflects increased scrutiny regarding fairness in power allocation. Crypto miners pay around 3.14 cents per kilowatt-hour, but millions of Ethiopian residents still don’t have reliable electricity. In his statement, Ashber said “domestic consumers and the strategic industry are always our priorities.”
Asheber revealed that 50% of EEP’s current revenues are directed towards the Koysha Hydropower project, the second largest after Grand Ethiopia’s Renaissance Dam (GERD). The CEO also noted that funding restrictions have slowed progress. However, Ethiopia is given a special exemption of borrowing $950 million to finalize Koysha under the IMF Extended Credit Facilities Program.
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