Ethiopia makes use of surplus hydropower from its dam to generate $55M by way of Bitcoin mining, selling inexperienced vitality and boosting the economic system.
Ethiopia is utilizing its additional hydropower in a brand new and worthwhile means. The nation has began promoting surplus electrical energy to Bitcoin mining. A lot of this extra energy is supplied by the Grand Ethiopian Renaissance Dam. As a substitute of a wastage as much as 11% of the vitality, Ethiopian Electrical Energy is now changing it into income. To this point, this has generated some $55 million in overseas foreign money throughout the previous ten months.
Bitcoin Mining Brings New Income Stream to Ethiopia
This concept was made extra fashionable when China banned crypto mining in 2021. Plenty of Chinese language mining corporations moved their operations abroad. Right now, nearly all of Bitcoin mining corporations (over 80%) in Ethiopia are Chinese language. This data was shared by Addis Perception in November 2024. The Grand Ethiopian Renaissance Dam, which was formally opened on September 9, 2025, generates six gigawatts of electrical energy. Part of this unused vitality is now supporting Ethiopia’s rising crypto mining business.
Due to this, Ethiopia is now liable for round 5% of the entire hash price of Bitcoin on the planet. That implies that the nation performs a noticeable position on the planet’s Bitcoin mining operations. Additionally, Ethiopia has very low charges for electrical energy, solely three to 4 cents per kilowatt-hour. This low value is an attraction to mining corporations searching for to chop prices.
This extra revenue could be very useful to the nation. Ethiopia has been going through political and regional difficulties. As an illustration, the persevering with battle with Egypt over rights to Nile River water has stalled since 2019.
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Regardless of these tensions, the dam continues to generate a secure energy provide. Since 2022, there have been proposals for contracts signed between Ethiopian Electrical Energy and 25 mining corporations. This effort to utilize unused energy started after the dam first went into making electrical energy.
Ethiopia Units Instance for Clear Power Crypto Mining
Turning this extra energy into financial achieve is proving to be a wise transfer. The income is an enormous deal when in comparison with different international crypto information. For instance, on September 8, 2025, the US authorities introduced it had seized $261 million price of ether from criminals. Ethiopia’s $55 million from authorized mining is proof of how highly effective stranded vitality can be utilized properly.
Another excuse why Ethiopia stands out is that it’s dedicated to renewable vitality. Greater than 92% of its electrical energy is generated by hydropower. In distinction, different mining nations such because the U.S. and Russia rely upon fossil fuels. Ethiopia’s use of inexperienced vitality provides it an edge in inexperienced mining
Bitcoin mining consumes a major quantity of electrical energy — roughly 6.4 million kilowatt-hours per Bitcoin. That’s the reason having a pleasant, unused energy supply, such because the dam, is so helpful. That is extra necessary than ever because the Bitcoin halving in 2024, which has made mining extra aggressive. With a few of the most cost-effective electrical energy on the planet, Ethiopia beats nations like Iran in mining value for each coin.
Nonetheless, there are some issues within the nation. Web high quality in some locations is sucky and would possibly sluggish mining operations. Nonetheless, authorities assist and the excessive vitality output of the dam are anticipated to assist to resolve these issues. As extra corporations arrive, Ethiopia may function a mannequin for using renewable vitality within the cryptocurrency sector.
For now, the technique is working. Ethiopia’s use of hydropower for the aim of Bitcoin mining is producing cash, attracting consideration, and proving that clear vitality and crypto can go collectively.