Ethiopian Electric Power (EEP) has announced its intention to cease all cryptocurrency mining operations in the country amid growing concerns about energy consumption.
Reasons for Stopping Mining Operations
EEP explains that the decision comes in response to increasing public pressure regarding the energy burden from crypto data centers. Public frustration has pushed the company to reconsider its plans in the crypto mining sector.
Energy Situation in the Country
According to the recently released Ethiopian Energy Outlook 2025 report, cryptocurrency mining is on track to consume about a third of the country's total power output this year. This raises significant questions about the appropriateness of such consumption amid ongoing electricity shortages and dependency on diesel in certain regions. The report indicates that data centers are projected to consume eight terawatt hours (TWh) of electricity.
Future of Crypto Mining in Ethiopia
Asheber Balcha, CEO of EEP, stated that the electricity regulator will not engage in new contracts in the data mining field and will not continue with existing agreements. He emphasized that the priority is domestic consumers and strategic industries. Additionally, he mentioned that 50% of EEP's current revenue is directed towards the Koysha Hydropower Project.
EEP's decision to phase out cryptocurrency mining operations is driven by the need to ensure reliable electricity for residents and manage energy resource demands.
