Ethiopian Electric Power (EEP) has ended its flat-rate electricity tariff for cryptocurrency mining, ending Ethiopia’s status as a low-cost hub for Bitcoin mining and forcing the industry to reassess profitability. The new pricing structure takes effect on December 1, 2025.
Under the previous rate of just 3.14 US cents per kilowatt-hour, Ethiopia attracted nearly 30 international mining firms, with an equal number awaiting licenses. The country quickly became a major player in the global Bitcoin network, contributing an estimated 7% to 10% of the world’s hashrate. Bitcoin miners now consume around 30% of Ethiopia’s total electricity output.
Last year, EEP earned roughly $220 million from supplying power to the mining sector, with projections reaching $312.5 million for the budget year ending June 2026. Some analysts forecast revenues could hit $500 million in the near future.
The new pricing replaces the flat rate with a two-tiered system: a Time-of-Use (TOU) Tariff and an Availability-Based Tariff (ABT). The baseline Daily Average rate starts at 4.00 US cents per kWh but jumps to 6.00 cents per kWh during peak hours (6:00 PM to 10:00 PM), representing a 91% increase compared to the old flat rate. The base rate will rise further to 6.50 cents per kWh by year three, a total increase of 107%. The ABT scheme links charges to grid availability, offering discounts during curtailment but introducing financial uncertainty.
Wondwosen Teshome, Director of Energy Trading and Marketing at EEP, said the overhaul is a “national necessity” driven by cost assessments, demands for financial sustainability, and grid reliability amid rising domestic consumption. He emphasized that subsidized power for miners is no longer viable.
The tariff change poses a significant challenge for miners as energy costs often make up 80% of their expenses. Success will depend on strategic energy use to avoid expensive peak rates.
While the government has not prioritized cryptocurrency investment, experts like Kal Kassa advocate closer cooperation. Kal proposes partnerships between EEP and miners on renewable energy projects to support sustainable growth.
The first billing under the new tariff will arrive in December 2025, ushering in a critical phase where only the most adaptive miners may thrive as Ethiopia continues expanding its footprint in the Bitcoin network.
