State-owned Ethiopian Electric Power (EEP) has announced its intention to shut down all the crypto mining operations in the country. According to the body, there are plans for a gradual phase out of all activities related to crypto mining amid growing concerns.
Ethiopian Electric Power mentioned that the move became necessary after growing public pressure over the increase in energy burden posed by these crypto-related data centers. This development has caused agitations in the country, causing the general public to voice their frustrations.
Crypto mining firms started setting up shops in Ethiopia over the past year due to the low energy tariffs. While the government is also eager to accommodate foreign investment, concerns over increased energy needs have led the heads of EPP to reconsider things.
Ethiopian Electric Power to phase out crypto mining operations
In the recently published Ethiopian Energy Outlook 2025 report, it was revealed that cryptocurrency mining is on track to consume about a third of the total power output of Ethiopia this year. The report highlighted that this level of consumption could compromise essential sectors, especially areas still struggling with blackouts and diesel dependency.
According to the report, which was created by state-owned firms and the Petroleum and Energy Authority in the country, the data centers are on course to consume eight terawatt hours (TWh) of electricity this year, questioning whether such usage is appropriate.
While crypto mining has been seen as a means of foreign exchange, the report discusses the debates the energy consumption has sparked, noting that there is a lack of efficient electricity in Ethiopia.
“Since the demand and supply balance is tight, it remains an open question whether the power could be better used for export, general electrification, or other productive uses, like pumping of water in the water and agriculture sector, where diesel generators are used to a wide extent,” the report read.
However, the EEP has decided to make a decision that will help the majority in the country.
EEP to gradually halt contracts with data mining firms
According to a statement from Asheber Balcha, CEO of EEP, the electricity regulator will no longer undertake new contracts in the data mining field. “There will be no new contracts in the field of data mining, and we are not interested in continuing with existing ones either,” Balcha said during the annual performance review held on Friday, August 7. However, he added that the sector was never part of the EEP’s long-term strategy.
EEP’s decision also reflects growing scrutiny over power allocation fairness. Though crypto miners pay about 3.14 cents per kilowatt-hour, millions of Ethiopian residents are still without reliable power. In his statement, Asheber noted, “Domestic consumers and strategic industries are always our priority.”
Asheber revealed that 50% of the EEP’s current revenue is being directed to the Koysha Hydropower Project, the second largest in the country behind the Grand Ethiopian Renaissance Dam (GERD). The CEO also noted that the progress has been slowed by funding constraints. However, Ethiopia has been given a special exemption to borrow $950 million to finalize Koysha under the IMF Extended Credit Facility program.
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