Ethiopia’s state utility, Ethiopian Electric Power (EEP), has suspended issuing new electricity delivery permits to crypto-mining (or “data mining”) operators, a move prompted by mounting strain on the national grid and growing concerns over energy access.
In its annual performance review, EEP’s CEO, Ashebir Balcha, stated, “From our current assessment, access appears to be at capacity,” signalling a standstill in crypto-mining permit approvals. Currently, 25 firms have already established mining operations in Ethiopia, with nearly 20 more awaiting entry, attracted by the country’s low-cost hydropower.
The rise in crypto-mining delivered a significant boost to EEP’s revenues, earning about $200 million in the first half of 2025 alone. More impressively, EEP saw a 141% year-on-year jump in foreign currency earnings, about $338 million, accounting for approximately 7% of total electricity generation.
Yet the windfall comes with controversy. Ethiopia still has one of the highest rates of unelectrified households globally, with only half the population having access to electricity.
Meanwhile, the impending launch of the Grand Ethiopian Renaissance Dam (GERD), scheduled within two months, is expected to inject over 5,000 MW of additional capacity into the grid. However, significant infrastructure gaps remain, particularly in transmission to underserved regions.
Essentially, Ethiopia is reassessing its crypto-mining playbook, balancing urgent infrastructure needs and equitable electricity access against a lucrative revenue stream. The freeze on new permits may mark a turning point in prioritising national development over short-term gains.
