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Posted By OrePulse
Published: 13 Nov, 2025 11:14

Ethiopia Raises Power Tariffs for Crypto Firms

By: Ethio negari

Ethiopian Electric Power (EEP) has announced a new electricity tariff structure for data mining companies, marking a significant policy shift in how energy is priced for the rapidly expanding cryptocurrency and data processing industry.

According to an official notice issued by the state-owned utility, the revised tariff will take effect on December 1, 2025, and will be implemented gradually over the next three years.

The changes are part of a broader effort to align energy pricing with EEP’s generation, transmission, and operational costs, ensuring the financial sustainability of Ethiopia’s national power system.

EEP thanked investors for choosing Ethiopia as a destination for crypto and data mining operations and reaffirmed its commitment to providing “reliable, secure, and clean electric power.”

The new system introduces a Time-of-Use (TOU) tariff, under which electricity charges will vary depending on the time of day and grid load conditions.

Energy use will be billed based on Peak, Off-Peak, and Shoulder periods to encourage efficient consumption and balance power demand.

“The revised tariff plan has been approved in line with the national cost recovery framework,” EEP said, adding that electricity bills for December 2025 will already reflect the new rates.

EEP noted that the tariff revision is consistent with the Power Purchase Agreement (PPA) signed with data mining companies, which allows adjustments in line with approved national tariff changes.

The utility described the move as essential for maintaining system reliability and meeting the growing energy demand from “strategic customers” such as data centers and cryptocurrency firms.

Ethiopia has become an emerging hub for cryptocurrency and data mining companies, attracted by its low-cost electricity and expanding hydropower capacity.

However, officials say the sector now consumes about 30 percent of the nation’s total power generation.

In response, the government has introduced tighter regulations and higher tariffs to manage electricity use and prioritize domestic needs.

EEP recently reported earning $82 million in revenue from electricity sales to crypto mining companies in just three months, while the country generated $182 million from power exports to neighboring countries in the 2024/25 fiscal year.

These figures are expected to grow as Ethiopia continues expanding its regional energy links and implements the new tariff framework.

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