Ethiopia's electricity regulator announces plans to push out crypto miners

Ethiopia's electricity regulator, Ethiopian Electric Power (EEP), has announced a definitive plan to phase out all cryptocurrency mining operations by 2025. This decision comes amid growing public pressure and concerns about the energy burden posed by crypto mining, which is projected to consume about one-third (approximately 27-33%) of the country's national grid capacity this year.

EEP will progressively terminate existing mining permits and halt issuing new electricity supply contracts for crypto mining. The government prioritizes domestic energy needs, rural electrification, and public infrastructure over these energy-intensive crypto operations.

Crypto mining firms in Ethiopia began expanding rapidly due to low energy tariffs, but now their consumption, estimated at about 8 terawatt hours (TWh) per year, threatens essential sectors struggling with energy shortages and blackouts.

The EEP CEO Asheber Balcha stated that no new contracts for crypto mining will be approved, and existing ones will not be extended. The sector was never part of the EEP’s long-term energy strategy.

There is a strong emphasis on fair energy allocation since millions of Ethiopians still lack reliable electricity, while crypto miners pay around 3.14 cents per kWh.

The move aligns Ethiopia with other energy-constrained countries (like China and Kazakhstan) that have restricted crypto mining to prioritize sustainable energy use and social equity.

Despite generating estimated revenues of about $200 million in early 2025, the government decided that energy security and equitable distribution are more critical than the economic gains from crypto mining.

This policy shift reflects Ethiopia’s broader strategy to stabilize its energy sector, support rural electrification, and manage its energy demands responsibly while curbing the growth of energy-intensive crypto mining activities in the country.

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