Ethiopia Turns Surplus Hydropower into $55M via Bitcoin Mining

Ethiopia uses surplus hydropower from its dam to generate $55M via Bitcoin mining, promoting green energy and boosting the economy.

Ethiopia is using its extra hydropower in a new and profitable way. The country has started selling surplus electricity to Bitcoin mining. Much of this additional power is provided by the Grand Ethiopian Renaissance Dam. Instead of a wastage up to 11% of the energy, Ethiopian Electric Power is now converting it into revenue. So far, this has generated some $55 million in foreign currency during the past ten months.

Bitcoin Mining Brings New Revenue Stream to Ethiopia

This idea was made more popular when China banned crypto mining in 2021. Lots of Chinese mining companies moved their operations overseas. Today, the majority of Bitcoin mining companies (over 80%) in Ethiopia are Chinese. This information was shared by Addis Insight in November 2024. The Grand Ethiopian Renaissance Dam, which was officially opened on September 9, 2025, generates six gigawatts of electricity. A part of this unused energy is now supporting Ethiopia’s growing crypto mining industry.

Because of this, Ethiopia is now responsible for around 5% of the total hash rate of Bitcoin in the world. That means that the country plays a noticeable role in the world’s Bitcoin mining operations. Also, Ethiopia has very low rates for electricity, only three to four cents per kilowatt-hour. This low cost is an attraction to mining companies seeking to cut costs.

This additional income is very helpful to the country. Ethiopia has been facing political and regional difficulties. For instance, the continuing conflict with Egypt over rights to Nile River water has stalled since 2019.

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Despite these tensions, the dam continues to generate a stable power supply. Since 2022, there have been proposals for contracts signed between Ethiopian Electric Power and 25 mining companies. This effort to make use of unused power began after the dam first went into making electricity.

Ethiopia Sets Example for Clean Energy Crypto Mining

Turning this additional power into economic gain is proving to be a smart move. The revenue is a big deal when compared to other global crypto news. For example, on September 8, 2025, the US government announced it had seized $261 million worth of ether from criminals. Ethiopia’s $55 million from legal mining is evidence of how powerful stranded energy can be used wisely.

Another reason why Ethiopia stands out is that it’s committed to renewable energy. More than 92% of its electricity is generated by hydropower. In contrast, other mining countries such as the U.S. and Russia depend on fossil fuels. Ethiopia’s use of green energy gives it an edge in green mining

Bitcoin mining consumes a significant amount of electricity — approximately 6.4 million kilowatt-hours per Bitcoin. That is why having a nice, unused power source, such as the dam, is so valuable. This is more important than ever since the Bitcoin halving in 2024, which has made mining more competitive. With some of the cheapest electricity in the world, Ethiopia beats countries like Iran in mining cost for every coin.

Still, there are some problems in the country. Internet quality in some places is sucky and might slow mining operations. However, government support and the high energy output of the dam are expected to help to solve these problems. As more companies arrive, Ethiopia could serve as a model for the use of renewable energy in the cryptocurrency sector.

For now, the strategy is working. Ethiopia’s use of hydropower for the purpose of Bitcoin mining is generating money, attracting attention, and proving that clean energy and crypto can go together.