Ethiopia Electric Power (EEP), the country’s state-owned utility, has signed-power purchase agreements with 25 bitcoin mining companies generating over $55 million over the past 10 months, according to a recent report.
The companies are attracted by affordable renewable energy from the Grand Ethiopian Renaissance Dam (GERD).
According to Ethan Vera, Co-Founder and Chief Operating Officer of Luxor Mining, Ethiopian Electric Power (EEP) has dedicated nearly 600 megawatts (MW) to bitcoin miners operating in the country.
The Luxor executive shared that several hundred more megawatts are poised to come online later this year [2024].
Ethiopia’s current mining capacity translates to a significant 2.25% of the total Bitcoin hash rate, making it a significant contributor from Africa. According to Luxor data, the country ranks fourth in Bitcoin mining hash rate contribution, trailing only:
- The United States
- Hong Kong, and
- Asia
Since China’s 2021 ban on bitcoin mining, Ethiopia has drawn a wave of Chinese miners. With ample hydropower and surplus renewable energy, the Ethiopian government has actively worked to capitalize on these resources, aiming to position the country as a key Bitcoin mining hub.
[TECH] REPORT | Chinese Bitcoin Miners Shift Focus to Ethiopia After 2021 Beijing Ban: After Beijings abrupt crypto ban in 2021, Chinese Bitcoin miners were forced out of their homeland. Now, they are increa.. https://t.co/rNf8nJlCwM via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) March 23, 2024
Ethiopian Investment Holdings (EIH), the government’s investment arm, signed a $250 million memorandum of understanding (MoU) with Hong Kong-based West Data Group in February 2024. This partnership will enable the development of infrastructure to support data mining and artificial intelligence training operations.
🇪🇹 BITCOIN | The Ethiopian Sovereign Wealth Fund to Start Mining Bitcoin Under a $250 Million Deal
On February 15 2024, the #Ethiopian Sovereign Wealth Fund, Ethiopian Investment Holdings (EIH), inked a memorandum of understanding with the Hong Kong-based West Data Group’s… pic.twitter.com/VzOX7StrVj
— BitKE (@BitcoinKE) February 23, 2024
According to data from the International Trade Association, Ethiopia has 5,250 MW of installed generation capacity, with 90% of its electricity sourced from clean hydropower. Yet, despite this plentiful supply, only half of the population has access to electricity, creating a substantial surplus.
Additionally, Ethiopia is selling its surplus to its East African neighbors. Ethiopia Electric Power (EEP) reportedly received $10.38 million for selling more than 169,710 megawatt-hours (MWh) of power to Djibouti and $20.47 million for over 314,931 MWh of power sold to Kenya.
Similarly, Ethiopian Electric Power earned more than $659,000 from the 13,185 MWh of power it provided to Sudan. However, due to the ongoing conflict in Sudan, the institution was only able to supply 15% of the planned electricity for the quarter.
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