Ethiopia Cuts Power Supply to Bitcoin Miners Amid Drought
Ethiopian Electric Power (EEP) has reduced electricity supply to bitcoin mining companies from the original 98% guaranteed in their contracts. The company now supplies them with only about 23% of the agreed volumes, citing a significant decrease in water inflows to its hydroelectric dams.
The drought, exacerbated by El Niño, has resulted in a 20% reduction in water levels. EEP CEO Ashebir Balcha explained that the supply was first reduced to 75%, then to 50%, before dropping to around 23%. This reduction impacts a sector that has become one of EEP's main clients.
Data presented during the company's annual review indicated that data mining activities accounted for about one-third of the electricity consumed and a significant portion of its revenue. Ethiopian Business Review estimates their payments at 50.37 billion birrs for the last fiscal year.