Ethiopian Electric Power (EEP) has reduced electricity supply to Bitcoin miners to 23% of their contracted levels. This decision follows a 20% decline in water inflows into the country's hydroelectric reservoirs, which the CEO Ashebir Balcha attributed to intensified dry conditions caused by El Nino.
The utility company previously implemented a phased reduction, lowering deliveries from 75% to 50% before reaching the current 23%. EEP plans to reassess the situation in October, with potential further restrictions on mining operations or electricity exports to neighboring countries.
Bitcoin miners previously accounted for 35% of EEP's revenue during the last fiscal year and consumed nearly one-third of the nation's total electricity output. International companies, such as Phoenix Group, had previously expanded their local mining capacity to 132 megawatts by April 2025.
Economist Saifedean Ammous noted that global Bitcoin mining capital expenditure and power consumption may have peaked between 2024 and 2025. He highlighted that competition from AI data centers provides alternative monetization routes for existing energy infrastructure, potentially leading to a contraction in mining activity.
