Ethiopia slashes power to bitcoin miners as drought hits Renaissance Dam

An El Niño-induced drought has cut June-September rainfall in Ethiopia to about half of normal, causing the Renaissance Dam's reservoir to lose 20 percent of its volume. Because more than 90 percent of the country's electricity comes from hydro sources, the shortfall threatens the grid's stability. Ethiopian Electric Power responded by reducing the electricity allocated to around thirty bitcoin-mining companies by 75 percent, shifting supply toward residential users.

Bitcoin miners had previously consumed a sizable share of the nation's power for cryptocurrency production. The Renaissance Dam on the Blue Nile, Africa's largest hydroelectric plant, generates roughly half of Ethiopia's electricity, making the curtailment critical for preserving essential services during the drought.