Ethiopia Slashes Power to Bitcoin Miners by 77% Amid Hydropower Shortage

Ethiopia has cut power supplied to Bitcoin mining operations to 23% of contracted levels after a sharp drop in water inflows to its hydroelectric reservoirs. The reduction follows a step‑down from 75% to 50% and finally to the current level, according to Ethiopian Electric Power (EEP) CEO Ashebir Balcha.

Hydropower Constraints Drive Cuts

El Niño‑related dry conditions have lowered reservoir inflows by about 20%, prompting EEP to prioritize electricity for residential users and manufacturers. The utility plans to reassess the situation in October and may further reduce allocations or limit electricity exports to neighboring countries.

Impact on Mining Revenue and Capacity

Bitcoin miners accounted for roughly 35% of EEP’s revenue in the last fiscal year and consume close to one‑third of Ethiopia’s total electricity output. International miners, such as Phoenix Group, have expanded capacity in the country, reaching 132 MW in April 2025.

Broader Industry Context

Economist Saifedean Ammous noted that global Bitcoin mining electricity consumption and capital expenditure may have peaked in 2024‑2025, citing a 35% price decline over the past year and the upcoming halving that reduces block rewards. He also highlighted competition from AI data centers, which could divert electricity use away from mining.