The state-owned power producer, Ethiopian Electric Power (EEP), has earned 27 million dollars from electricity sales to data miners in less than a year. CEO Ashebir Balcha disclosed that they achieved 97pc of their target in a few months.

“We had to restrict sales due to oversupply concerns,” he said.

The past two years have seen a surge in data mining companies establishing operations in Ethiopia, positioning the country as a new frontier in this burgeoning sector. EEP has signed contracts with around 18 companies to supply electricity for their mining activities, with four becoming operational by March. These operations are substantial consumers of electricity, each requiring between 10MW and 100MW. Consequently, the Russian company, Bitcluster, has set up a 30,000Sqm facility near the Kilinto high-voltage substation in the capital.

Concerns have been raised by experts about the impact of power exports and sales to data miners, fearing potential energy deficits for other sectors and the general population. Ashebir countered these concerns, noting that EEP prioritises national investments, including those in cement, real estate, industry, and economic zones.

He said that new projects are planned for the coming year, financed by the World Bank.

“We’ll resume once new projects are operational,” he said.

EEP generated 20 billion Br in revenues for the past fiscal year, with 140 million dollars from exporting nine percent of its generated power to neighbouring countries. Ashebir disclosed plans to begin transmission testing to Tanzania next month, while South Sudan has also expressed interest. Ethiopia has been exporting electricity to Sudan and Djibouti for the past decade, with transmission to Kenya starting in November 2022, reaching 200MW.

While exports increased by six percent, the growth in Kenyan imports was offset by reduced demand from Djibouti and Sudan. Imports to Sudan have plummeted by 90pc from a peak of 200MW due to the ongoing civil war. EEP is currently fielding requests for power supplies up to 300MW, equivalent to the total generation capacity of the Tekeze Hydroelectric Dam. Ashebir expressed concern over meeting rising demand, cautioning that demand might exceed capacity.

“Exports are not our priority,” he said.

Ashebir underscored that nearly half of Ethiopia’s population lacks access to electricity, with over 20,000Km of transmission lines vulnerable to environmental factors and theft. He emphasised that constructing a small substation requires five million dollars and that a tariff revision is essential to enhance accessibility.