Ethiopia Cuts Electricity Supply to Bitcoin Mining by 77%

Ethiopia's state-owned Ethiopian Electric Power Company (EEP) has drastically reduced the electricity supply allocated to Bitcoin mining, limiting it to just 23% of contracted capacity.

This decision comes in the wake of a severe drought caused by El Niño, which has lowered water levels in the country's hydroelectric reservoirs. The reduction is due to a prolonged drought that reduced the flow of water in hydroelectric dams, forcing the prioritization of essential domestic and productive consumption.

The impact on Bitcoin mining companies will be significant, as they rely heavily on renewable energy sources like hydroelectric power for their operations. Ashebir Balcha, CEO of EEP, stated that safeguarding the electricity supply to homes and ensuring continued manufacturing activity are the top priorities during this weather emergency.