Ethiopia Slashes Power to Bitcoin Miners Amid Severe Drought
Ethiopia's power utility has reduced electricity supply to Bitcoin miners by 77%, cutting their contracted levels to just 23%. The move is due to a severe drought caused by El Niño, which has led to a 20% reduction in water inflows into the country's reservoirs.
The Ethiopian Electric Power (EEP) CEO Ashebir Balcha explained that the utility initially reduced deliveries to 75% of contracted levels, then to 50%, and finally to 23%. The company will reassess the situation by October and may lower supply even further or limit exports to neighboring nations.
Bitcoin miners reportedly account for 35% of EEP's revenue and consume almost one-third of Ethiopia's electricity output. International miners, including Phoenix Group, have expanded Ethiopian mining capacity to 132 megawatts in April 2025.