Ethiopia Cuts Bitcoin Mining Power Amid El Niño Drought
Ethiopia has drastically cut power supply to its thriving Bitcoin-mining industry by three-quarters, severely impacting companies that account for 35% of Ethiopian Electric Power Corp's revenue. The move is a response to reduced water inflow into hydroelectric dams due to the El Niño weather phenomenon, which has exacerbated the dry season in the country.
The power-hungry Bitcoin-mining facilities consume nearly a third of Ethiopia's total electricity production, with 39 companies having power-purchase agreements and 31 already operational. Under these arrangements, Ethiopian Electric Power Corp had committed to deliver at least 98% of the contracted power.
Ethiopian Electric Power Corp's CEO Ashebir Balcha explained that when they noticed the dry season approaching, they reduced supply to 75%, then to 50% when there was no improvement. Now, only 23% of the contracted power is being delivered.
The drought has not only affected Bitcoin mining but also trimmed EEP's export-revenue forecast by 40% to $279 million this fiscal year.