Ethiopia cuts power to Bitcoin miners as El Niño strains hydropower
Ethiopia has cut electricity supplied to Bitcoin miners to 23% of contracted levels after a 20% drop in reservoir inflows strained the countrys hydropower system. Bloomberg reported on Tuesday that El Niño had intensified dry conditions across the East African country, forcing state-owned Ethiopian Electric Power to reduce electricity supplied to mining operations while prioritizing households and manufacturers. EEP CEO Ashebir Balcha said the utility initially lowered electricity deliveries to miners to 75% of their contracted amounts before reducing them to 50% and eventually 23%. The company plans to reassess reservoir and electricity conditions in October. Further cuts remain possible if water levels do not improve, while Ethiopia could restrict electricity exports to neighboring countries if domestic supply comes under more pressure. Bitcoin miners lose access to most contracted power Bitcoin miners have become a large source of demand for Ethiopias electricity system after low-cost hydropower attracted operators looking for cheaper energy. Mining companies consumed almost one-third of the country‘s electricity output and generated 35% of EEP’s revenue during the previous fiscal year, according to Bloomberg. The latest restrictions therefore affect a customer group that has become financially important to the state power company. Ethiopias mining expansion has been built largely around its hydroelectric resources. As crypto.news









