Ethiopia Cracks Down on Crypto Miners: Electricity Regulator Pulls the Plug

Addis Ababa just flipped the off switch for bitcoin miners—again. Ethiopia's energy regulator dropped the hammer this week, announcing aggressive plans to boot cryptocurrency mining operations from the grid. No gentle phase-out here—this is a full-scale eviction notice for an industry that's been guzzling megawatts like dehydrated camels at an oasis.

Power Play or Political Move?

The decision comes as Ethiopia struggles with chronic electricity shortages, despite being home to Africa's second-largest hydropower capacity. Funny how governments always blame crypto miners when their infrastructure planning fails—almost like Wall Street blaming 'market volatility' after another botched IPO.

Miners now face a brutal choice: pack up their ASICs or go rogue with off-grid solutions. Either way, this shakes up Africa's emerging crypto landscape—and proves yet again that when regulators get nervous, Bitcoin's the first scapegoat out the door.

Ethiopian Electric Power to phase out crypto mining operations

In the recently published Ethiopian Energy Outlook 2025 report, it was revealed that cryptocurrency mining is on track to consume about a third of the total power output of Ethiopia this year. The report highlighted that this level of consumption could compromise essential sectors, especially areas still struggling with blackouts and diesel dependency.

According to the report, which was created by state-owned firms and the Petroleum and Energy Authority in the country, the data centers are on course to consume eight terawatt hours (TWh) of electricity this year, questioning whether such usage is appropriate.

While crypto mining has been seen as a means of foreign exchange, the report discusses the debates the energy consumption has sparked, noting that there is a lack of efficient electricity in Ethiopia.

“Since the demand and supply balance is tight, it remains an open question whether the power could be better used for export, general electrification, or other productive uses, like pumping of water in the water and agriculture sector, where diesel generators are used to a wide extent,” the report read.

However, the EEP has decided to make a decision that will help the majority in the country.

EEP to gradually halt contracts with data mining firms

According to a statement from Asheber Balcha, CEO of EEP, the electricity regulator will no longer undertake new contracts in the data mining field. “There will be no new contracts in the field of data mining, and we are not interested in continuing with existing ones either,” Balcha said during the annual performance review held on Friday, August 7. However, he added that the sector was never part of the EEP’s long-term strategy.

EEP’s decision also reflects growing scrutiny over power allocation fairness. Though crypto miners pay about 3.14 cents per kilowatt-hour, millions of Ethiopian residents are still without reliable power. In his statement, Asheber noted, “Domestic consumers and strategic industries are always our priority.”

Asheber revealed that 50% of the EEP’s current revenue is being directed to the Koysha Hydropower Project, the second largest in the country behind the Grand Ethiopian Renaissance Dam (GERD). The CEO also noted that the progress has been slowed by funding constraints. However, Ethiopia has been given a special exemption to borrow $950 million to finalize Koysha under the IMF Extended Credit Facility program.

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