Ethiopian Crypto Miners Face Higher Electricity Costs as EEP Announces Tariff Hike
Ethiopian Electric Power (EEP) has announced a significant change in electricity tariffs for cryptocurrency mining operations in Addis Ababa. The move signals a shift towards aligning energy costs with grid stability and managing peak demand, impacting the burgeoning crypto mining sector in the country. The new pricing structure is scheduled to take effect on December 1, 2025, potentially affecting the profitability of crypto mining ventures.
New Tariff Structure Details
The revised tariff plan introduces two key components: a Time-of-Use (TOU) billing system and an Availability-Based Tariff (ABT) adjustment. The TOU structure will see electricity charges varying based on peak, off-peak, and shoulder periods, incentivizing miners to shift their operations to times of lower demand. Furthermore, the ABT adjustment will dynamically increase rates when grid availability falls below a certain threshold. All electricity consumed from December 2025 onward will be subject to these new rates. This change reflects a broader trend in African nations as they grapple with the energy demands of emerging technologies like cryptocurrency.
This tariff adjustment will likely necessitate a strategic rethink for crypto mining businesses operating in Ethiopia. While the nation has been an attractive destination due to relatively low electricity costs in the past, the increased and variable expenses could prompt some miners to either optimize their energy consumption or explore alternative locations. The success of Ethiopia’s crypto mining industry will now hinge on its ability to adapt to this new energy landscape.
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