Ethiopia Uses Surplus Hydropower from Its Dam to Generate $55M via Bitcoin Mining, Promoting Green Energy and Boosting the Economy
Ethiopia is harnessing its extra hydropower in a revolutionary manner by venturing into Bitcoin mining. This innovative approach primarily utilizes surplus electricity from the Grand Ethiopian Renaissance Dam (GERD), enabling the country to convert what was previously wasted energy—up to 11%—into a lucrative revenue stream. Over the past ten months, this strategic shift has resulted in approximately $55 million in foreign currency earnings, presenting a unique opportunity for economic growth and development.
Bitcoin Mining Brings New Revenue Stream to Ethiopia
The shift towards Bitcoin mining gained momentum after China imposed a ban on cryptocurrency mining in 2021. This led many Chinese companies to relocate their operations abroad, and Ethiopia has emerged as a favored destination for these ventures. Reports indicate that over 80% of the Bitcoin mining companies operating in Ethiopia are now Chinese, as per findings shared by Addis Insight in November 2024. The GERD, inaugurated on September 9, 2025, boasts an impressive capacity of six gigawatts, with a portion of this unused energy now fueling the burgeoning cryptocurrency mining sector.
With its efforts focused on capitalizing on this surplus energy, Ethiopia has successfully captured around 5% of the global Bitcoin hash rate. This significant contribution highlights the country’s growing influence within the world of cryptocurrency mining. Added to this is Ethiopia’s notably low electricity cost, ranging from three to four cents per kilowatt-hour, which serves as an enticing incentive for mining enterprises aiming to reduce operational expenses.
The revenue generated from Bitcoin mining is especially crucial for Ethiopia, especially considering the political and regional challenges it faces. The ongoing disputes with Egypt over Nile River water rights have halted progress since 2019, making financial opportunities like this critical for the nation’s economic stability.
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Despite the geopolitical tensions, the dam continues to deliver a reliable power supply. Since 2022, Ethiopian Electric Power has engaged in contract negotiations with 25 mining firms, establishing a framework for utilizing this previously untapped energy source, following the dam’s operational launch.
Ethiopia Sets Example for Clean Energy Crypto Mining
The ability to convert surplus energy into substantial economic gains represents a clever strategy for Ethiopia. With global crypto markets facing various challenges, such as the U.S. government’s seizure of $261 million worth of ether from illicit operations on September 8, 2025, Ethiopia’s legal and ethical mining practices stand out. The $55 million earned from Bitcoin mining demonstrates how effectively stranded energy can be utilized for national benefit.
Ethiopia’s commitment to renewable energy is another significant aspect that enhances its competitive edge. Over 92% of the country’s electricity generation relies on hydropower, in stark contrast to other mining nations like the U.S. and Russia, which predominantly depend on fossil fuels. This reliance on green energy positions Ethiopia as a leader in sustainable mining practices.
Bitcoin mining entails considerable energy consumption—approximately 6.4 million kilowatt-hours per Bitcoin mined. Hence, having a consistent and unused power source, such as the GERD, is invaluable, particularly in light of the competitive landscape following the Bitcoin halving in 2024. With some of the lowest electricity costs globally, Ethiopia’s mining costs outperform even those of countries like Iran.
However, challenges remain. The variability in internet quality in certain areas could hamper mining activities. Nonetheless, the government’s backing and the substantial energy output from the GERD are anticipated to alleviate such issues. As more companies establish operations, Ethiopia could emerge as a benchmark for integrating renewable energy into the cryptocurrency sector.
Currently, Ethiopia’s strategy of leveraging hydropower for Bitcoin mining is not only proving lucrative but also garnering international attention. It showcases the potential for harmony between clean energy initiatives and the cryptocurrency world.