Ethiopia Cuts Mining Power by 75% Amid Hydro Shortage

Ethiopian Electric Power reduced electricity supplied to Bitcoin mining firms by 75%. Miners now receive only 23% of their contracted power allocation. This cut follows a drop in water inflows to hydroelectric dams. The utility stated that incoming water levels are at least 20% below expectations. This action serves as a preemptive measure ahead of the dry season. The move directly challenges the narrative of stable clean energy for crypto operations.

Bitcoin miners accounted for 35% of Ethiopian Electric Power's revenue last year. They consumed nearly one-third of the country's total electricity output. The national grid generates 9,730 megawatts of power. Data mining generated 50.37 billion birr in the previous fiscal year. This revenue exceeds that of any other customer category. The dependency is significant enough to influence utility dispatch decisions.

Hydro Reliance Exposes Supply Risk

Hydropower provides 95% of Ethiopia's total electricity generation. This makes the grid highly sensitive to weather patterns. Reduced dam inflows force immediate curtailment of load. The 23% figure refers to the share of contracted mining supply delivered. It does not represent 23% of total national electricity consumption. This distinction limits the scope of the outage to specific industrial customers. The event highlights the volatility of weather-dependent renewable sources.

Market Reaction Remains Measured

Bitcoin traded at 76,850 US dollars at the time of reporting. The price fell 1.2% over the past 24 hours. The seven-day decline stood at 2.2%. Daily trading volume reached 31.9 billion dollars. According to GN markets/crypto (en-US), the price action reflects broader macro risks. Operational disruptions in mining hubs are one factor among many. Traders are monitoring how physical infrastructure constraints impact network sentiment. The data suggests limited immediate price impact from this specific cut.