Ethiopian Electric Power has sharply curtailed electricity supplied to Bitcoin miners as weaker hydropower conditions strain the country’s generation system. Mining operations are receiving only about 23% of their contracted electricity allocation, forcing operators to reduce or suspend equipment while the state-owned utility prioritizes households and domestic industries.
According to an August 28 report based on Ethiopian Electric Power CEO Ashebir Balcha’s annual performance briefing, EEP reduced supply after forecasts showed declining water inflows into the country’s hydroelectric reservoirs. The utility had agreed to provide at least 98% of contracted electricity under its power-purchase agreements, but Balcha said current deliveries have fallen to roughly 23%.
Hydropower Shortage Hits Bitcoin Mining
Ethiopia’s electricity system is highly exposed to changes in hydrological conditions. Hydropower accounts for roughly 95% of EEP’s generation mix, while reservoir inflows are running at least 20% below expectations, according to Balcha. Installed generating capacity increased to approximately 9,730 MW during the latest fiscal year, but capacity utilization remained below the utility’s target.
Bitcoin mining has simultaneously become an important source of electricity revenue. Data-mining customers generated 50.37 billion birr during the previous fiscal year and represented EEP’s largest individual revenue segment, creating a trade-off between valuable foreign-currency income and domestic electricity availability. The utility has power agreements with 39 mining companies, of which 31 are operational.
The curtailment has already affected companies with substantial infrastructure in Ethiopia. Canaan has disclosed that its Ethiopian Bitcoin mining operations are paused, while other operators have been forced to run below installed capacity. Phoenix Group had also expanded aggressively in the country, securing a 132 MW mining agreement in 2025 as companies sought access to Ethiopia’s comparatively inexpensive renewable electricity.
The disruption does not directly affect Bitcoin’s consensus rules or operation. Mining hardware can be shut down, relocated or redirected as local electricity conditions change, allowing global hashrate to shift between jurisdictions even when individual facilities become uneconomic or temporarily unavailable.
EEP Plans October Power Review
EEP has made clear that mining revenue does not override domestic electricity priorities. Balcha said households and domestic industry take precedence over data mining and electricity exports when generation becomes constrained, despite the substantial revenue that mining customers provide.
The utility plans to reassess reservoir conditions and generation capacity in October. EEP could either restore some mining supply or impose deeper restrictions if water inflows remain weak, while electricity exports may also be adjusted depending on available generation. EEP has already lowered its electricity-export revenue forecast by 40% to $279 million for the current fiscal year.
For miners, the October review is now the key operational milestone. A prolonged restriction would leave recently installed equipment underutilized and could accelerate decisions to relocate hashrate or redirect future capital elsewhere, while improved reservoir conditions could allow EEP to gradually restore contracted supply.
