Ethiopia has officially inaugurated the Grand Ethiopian Renaissance Dam (GERD), Africa’s biggest hydroelectric project. The country is using the extra electricity to expand access across the country and is turning to Bitcoin mining to use it.
The $5 billion project, which began construction in 2011, now produces a maximum of 5,150 megawatts of electricity, doubling the country’s generation capacity.
This is a turning point for Ethiopia. Nearly half of its 120 million people still live without electricity, not because the country cannot generate power but because it lacks the infrastructure to transmit it nationwide.
Until that gap is fixed, the government has been selling surplus electricity to Bitcoin mining companies that have flocked to the country for cheap, renewable energy.
Cheap power, quick revenue
Ethiopia’s state-owned utility, Ethiopia Electric Power (EEP), has signed agreements with 25 Bitcoin mining companies. According to official figures, these operations generated about $55 million in revenue in less than a year.
The attraction is clear: electricity prices for miners are set at just three to four cents per kilowatt hour — far below the global average of around 15 cents. That makes Ethiopia one of the world’s cheapest and most sustainable locations for Bitcoin mining.
Ashebir Balcha, EEP’s CEO, has clearly stated that the arrangement is not permanent.
“Until people have full access and the economy starts to consume all the power, we will use Bitcoin for transmission. It’s not a permanent endeavour,” he said.
After China and Kazakhstan stopped mining, global operators began looking for new destinations with abundant energy. Ethiopia’s low prices and hydropower have quickly made it a rising hub. According to industry trackers, the country now contributes about 2.5 per cent of the global Bitcoin hash rate.
Mining firms see Ethiopia as a rare opportunity: renewable energy, government support, and costs that are a fraction of those in North America or Europe.
Balancing Bitcoin mining with local needs
In August, Ethiopia’s government froze the approval of new mining permits, saying the electricity grid had reached its limit, as reported by Techpression. At the time, 25 companies are active, and almost 20 more remain on a waiting list.
The pause reflects growing domestic demand. Only 55 per cent of Ethiopians currently have access to power, and most rural areas still rely on traditional energy sources. Expanding transmission networks is expensive, but revenues from Bitcoin mining are helping bridge that gap.
The construction of a new dam is now seen as a possible game-changer. With additional power generation, Ethiopia could not only meet the needs of its citizens but also accommodate foreign mining companies seeking reliable energy.