Executives at the Ethiopian Electric Power (EEP) have ruled out any new electricity allocations for Bitcoin mining firms, closing the door, at least temporarily, on expansion plans by global heavyweights like Bitdeer Group, which recently signalled intent to deepen its footprint in Oromia Regional State.
The decision echoed a growing rift between Ethiopia’s broader digital ambitions and the reality of its constrained infrastructure. Despite arguments made by proponents such as Abinet Girmay, business analysis manager at Bitdeer, who stated Ethiopia’s competitive advantage in renewable energy, 90pc of the grid is powered by renewables, primarily hydropower, EEP's bosses have signalled a shift in priorities.
The state-utility company, struggling under financial strain and a slow electrification rollout, is now redirecting its focus inward. Expanding grid access, reinforcing infrastructure, and safeguarding its core public mandate were disclosed at a summit held on September 16, 2025, at the Inter-Luxury Hotel, on Marshal Tito Road. Abinet made a strong pitch, citing Ethiopia’s ultra-low electricity tariffs, stable supply, and a young and tech-savvy population as key assets that could make the country a global node for digital asset mining.
“Ethiopia ranks in the top 10pc globally for stable and low-cost electricity,” she argued, framing the mining sector as a vehicle for foreign exchange generation and local tech development.
She attributed surplus power capacity, currently 60pc utilisation of the 4,500MW generation, to an estimated 1.5-year payback period for miners.
"This is a profitable, green, and future-facing opportunity," she said.
But that view is increasingly out of step with the government’s shifting energy calculus. EEP spokesperson Moges Mekonen told Fortune that the power has no intention of allocating additional electricity to mining operations.
“Their power use has exceeded expectations,” he said.
He blamed unsustainable infrastructure burdens, the high capital cost of substations, and a strategic shift to rural electrification and domestic industrial growth.
“We can't afford to invest in facilities that serve a narrow segment of foreign-owned operations.”
Data released by EEP offers a glimpse into the industry’s footprint. As of February 2025, 21 officially licensed miners operated in the country, though industry sources say the real number is closer to 36. These operations generate roughly 25 million to 28 million dollars in monthly revenue for EEP, at post-tax rates between 3.2 and 3.6 U.S. cents per kilowatt-hour. In aggregate, the industry has earned EEP an estimated 220 million dollars, with electricity tariffs still among the world’s lowest.
And yet, electricity access in Ethiopia remains uneven. Only 22pc of the population has legal and metered access to the grid. Although 68pc of the population lives within five kilometres of power lines, only a quarter of the landmass is covered by the grid. The broader consequences are felt across sectors, limiting industrialisation, digital inclusion, and regional development.
Critics argue that the opportunity cost of subsidising power for Bitcoin miners is rising. The recent Ethiopian Energy Outlook 2025 report warned that low tariffs, high inflation, and stagnant revenue are weakening utilities like EEP and the Ethiopian Electric Utility (EEU). GERD, now officially completed and generating 3,400MW with a planned capacity of 5,150MW, has been a game-changer, accounting for a third of EEP’s output this year. But, the broader ecosystem remains under strain.
Biniyam Tufa, an energy expert with Green Scean Renewable Energy, summed up the unease.
“These companies don’t generate local jobs," he told Fortune. "They’re here for cheap power, and they can exit just as quickly.”
He advocated for policymakers to require co-investments from mining firms in grid expansion, adopt cost-reflective tariffs, and locate miners in industrial parks where transmission lines are already in place.
The tension between mining ambitions and national energy priorities illustrates a broader dilemma. The federal government's “Digital Ethiopia” strategy promotes blockchain development and tech sector growth, yet the very industries that could catalyse digital transformation now face political and infrastructural headwinds.
Kal Kassa, founder of BitcoinBirr.org, remains an outspoken advocate for mining. He argued that Ethiopia’s hydropower dominance gives it an ethical advantage over coal-dependent rivals.
“Unused electricity should be monetised, not wasted,” he said. "Mining has already brought significant foreign exchange into the country."
According to BitcoinBirr.org’s report, The State of Bitcoin Mining in Ethiopia, an industrial-grade Antminer S19 Pro can be operated profitably at Ethiopia’s electricity rates, costing 171 dollars a month. A 55 million dollar investment could power a 180,000-machine operation. The report claims that five percent of global Bitcoin mining was done in Ethiopia over the past year, though this figure remains unverified.
Despite regulatory tightening, EEP posted record earnings of 75.4 billion Br, a near tripling of revenue, in the 2024/25 fiscal year. The utility generated 29,480GWh, up 43pc year-on-year, beating its targets by 16pc. Electric power from the GERD contributed 33.2pc of that output, with hydropower accounting for 97.3pc of the mix. Foreign exchange earnings from exports surged to 338.7 million dollars, and a new 2.1TWh export target to Tanzania is already in the pipeline.
Even so, the sector faces operational risks. Construction delays, theft, and regional conflicts continue to undermine grid projects. Of 20 planned transmission projects, only five were completed in the last fiscal year.
The next target is to generate 31,600GWh and 109.5 billion Br in sales for 2025/26. However, with energy demand rising domestically and regionally, and with utilities undercapitalised, federal officials are signalling that power is too precious to subsidise speculative digital ventures, at least for now.
PUBLISHED ON
Sep 21,2025 [ VOL
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