BITCOIN | Ethiopia Halts New Power Permits for Crypto Mining as Grid Reaches Capacity Limit

Ethiopia’s state utility, Ethiopian Electric Power (EEP), has officially suspended the issuance of new electricity supply permits to crypto-mining – or “data mining” – companies, signaling a pause on further expansion of cryptocurrency operations in the country.

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Key Takeaways:

* Foreign Currency Revenue Surge: EEP reportedly generated $200 million from Bitcoin mining in just the first half of 2025 – highlighting the rapid, lucrative nature of these operations.

• Widespread Electricity Disparities: Ethiopia remains among countries with the largest unelectrified populations—worsened by growing crypto-mining demand. Analysts question the ethics of allocating scarce energy to digital mining while millions live without it.
• Strategic but Contested Development: While these operations bring much-needed foreign exchange inflows, critics argue the benefits are uneven and often flow back to foreign investors. Concerns also persist over opaque deal-making and prioritizing profit over local development.

Speaking to Shega Media, an Ethiopian news outlet, during the utility’s annual performance review, the CEO of Ethiopian Electric Power (EEP), said:

“From our current assessment, access appears to be at capacity,” stated EEP CEO, Ashebir Balcha.

This announcement comes amid a surge of interest in crypto-mining.

According to Shega Media, 25 companies have already established operations, while nearly 20 more are on the waiting list. These firms were drawn by Ethiopia’s abundant hydropower and low electricity tariffs, with state officials promoting crypto-mining as a way to monetize “stranded power” during off-peak periods. Yet, experts warn that actual consumption may exceed projections and potentially compromise local access.

EEP earned a hefty $338 million in foreign currency through power exports – accounting for about 7% of total generated electricity – a revenue jump of nearly 141% year-on-year. Crypto miners were among the key contributors. Additionally, Ethiopia currently exports 200 megawatts to Kenya and has received requests for another 100 MW.

While EEP manages generation and transmission through 20 power plants producing 7,900+ MW, the nearing inauguration of the Grand Ethiopian Renaissance Dam (GERD) – expected within two months – could add over 5,000 MW to the grid.

Still, only half of Ethiopians currently have access to electricity, with grid coverage of over 20,000 km underscoring significant infrastructure gaps.

“It’s hard to explain to people living in the dark why energy is being used to mine Bitcoin,” said a local energy analyst in Addis Ababa, Ethiopia.

Ethiopia’s decision to freeze new crypto-mining power permits reflects the growing tension between lucrative energy exports and the imperative of local energy access.

While hydropower developments and revenue gains are significant, critics – from civil society and the media – highlight that unchecked expansion could deepen energy inequities and benefit foreign stakeholders disproportionately.

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