Ethiopia Slashes Power Supply to Bitcoin Miners Amid Hydro Shortfall
Ethiopia has implemented a significant power cut for Bitcoin mining operations due to reduced water inflows into hydroelectric dams, affecting around 75% of their contracted supply. This decision was taken by Ethiopian Electric Power Corp. (EEP) as a precautionary measure ahead of an anticipated dry period.
The cut in power supply primarily concerns data-mining companies that account for 35% of EEP's revenue and consume nearly a third of the country's total electricity production, which stands at 9,730 megawatts.
While this situation may be seen as evidence against hydro-powered mining, it is essential to note that EEP plans to reassess its position in October once clearer data on generation capacity for the new water year becomes available. This suggests a seasonal management decision rather than an announced phase-out of Bitcoin mining.