Ethiopia’s state-controlled power regulation agency, Ethiopia Electric Power (EEP), has recently signed agreements to sell electricity to 25 bitcoin mining companies. These agreements have generated over 55 million United States dollars (USD) in revenue for Ethiopia the past 10 months.
The details
- According to Luxor data, Ethiopia contributes 2.25% of the global Bitcoin hash rate, ranking fourth in mining capacity worldwide, after the United States, Hong Kong, and Asia.
- Ethan Vera, Co-Founder and Chief Operating Officer of Luxor Mining, stated that over 600 megawatts (MW) have been dedicated to bitcoin mining operations in the country by the Ethiopian Electric Power.
- Per reports, several hundred more megawatts are also expected to become available for mining later in 2024.
Dive deeper
- Ethiopia has a power generation capacity of 5,250 MW, with 90% of its electricity sourced from hydropower.
- Despite this, only half of the population has access to electricity, resulting in a surplus.
- The EEP has capitalized on this by selling excess energy to neighboring countries, earning $10.38 million from 169,710 MWh sold to Djibouti and $20.47 million from 314,931 MWh sold to Kenya, per reports.
- It also sells excess energy to bitcoin mining companies who have found a haven in the country for its cheap energy rates.
- These companies benefit from low-cost power sourced from the Grand Ethiopian Renaissance Dam (GERD), where rates are estimated to be 0.03 USD per kilowatt-hour.
No Comment Found.