Ethiopian Electric Power has reduced electricity deliveries to Bitcoin miners to 23% of contracted levels, prioritizing households and manufacturers amid an El Niño-induced drought that cut reservoir inflows by 20%. The decision impacts a sector that consumes nearly one-third of Ethiopia's electricity and generated 35% of the utility's revenue last fiscal year. Meanwhile, global mining faces broader pressures from declining rewards and competition from artificial intelligence data centers.
Ethiopia Bitcoin mining power cuts
- ▪Ethiopian Electric Power CEO Ashebir Balcha stated the utility will reassess conditions in October 2026 and may impose further reductions or restrict electricity exports.
- ▪Ethiopian Electric Power CEO Ashebir Balcha stated that the utility cut power to Bitcoin miners to prioritize households and manufacturers.
- ▪Ethiopian Electric Power implemented power cuts to Bitcoin miners in phases, first reducing deliveries to 75%, then to 50%, and finally to 23%.
- ▪Ethiopian Electric Power reduced electricity delivered to Bitcoin miners to 23% of contracted levels due to lower water inflows straining reservoirs.
Hydroelectric shortage from El Niño
- ▪Water inflows into Ethiopia's hydroelectric reservoirs decreased by 20% due to dry conditions.
- ▪El Niño weather patterns intensified dry conditions in Ethiopia, according to a report by Bloomberg on September 15, 2026.
Bitcoin mining revenue in Ethiopia
- ▪Phoenix Group expanded its Bitcoin mining capacity in Ethiopia to 132 megawatts in April 2025.
- ▪Bitcoin miners consume almost one-third of the total electricity output in Ethiopia.
- ▪Bitcoin miners accounted for 35% of Ethiopian Electric Power's revenue during the last fiscal year.
Global Bitcoin mining decline pressures
- ▪The price of Bitcoin declined by more than 35% over the 12-month period leading up to September 16, 2026.
- ▪Economist Saifedean Ammous stated that Bitcoin's price must rise more than 18.92% annually to keep the dollar value of newly mined coins growing.
- ▪Economist Saifedean Ammous stated on September 15, 2026, that global Bitcoin mining electricity consumption and capital expenditure may have peaked in 2024 to 2025.
AI competition for mining infrastructure
- ▪Competition from artificial intelligence data centers provides Bitcoin miners with alternative options to monetize their electricity connections and infrastructure.
- ▪An estimate by Miner Weekly in June 2026 indicated that public Bitcoin miners could require approximately $50 billion to develop planned artificial intelligence infrastructure.
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