Latest news with #EthiopianElectricPower
Coin Geek
3 days ago
- Business
- Coin Geek
Ethiopia boots out BTC miners despite $200m revenue
Getting your Trinity Audio player ready... Ethiopia has become the latest country to purge BTC block reward miners as their strain on the national grid becomes unsustainable. The Ethiopian Electric Power (EEP) company recently announced that it intends to gradually phase out BTC miners from the East African nation as concerns mount over their astronomical power demands. Source: Addis Standard In its Ethiopian Energy Outlook 2025 report, EEP revealed that its short-lived romance with the block reward miners has come to its end, less than two years since it signed its first power purchase agreement with a mining firm. 'There will be no new contracts in the field of data mining, and we are not interested in continuing with existing ones either,' EEP CEO Asheber Balcha revealed during the grid operator's annual performance review, as reported by the local paper, Ethiopian Reporter. Ethiopia was hailed as the new destination for BTC miners who had been booted out of jurisdictions like China, Kosovo, Kazakhstan, and Norway. However, according to Balcha, EEP only sought a short-term dalliance with the sector to prop up its coffers and never intended to make Ethiopia a permanent home for the miners. 'We have only started it for a short time. After a few years, companies engaged in this sector will leave or shift to other sectors…Domestic consumers and strategic industries are always our priority,' he stated. Ethiopia's BTC mining honeymoon cut short Ethiopia started warming up to BTC miners in late 2023, culminating in the first major arrival of a miner—Hong Kong's West Data Group—in February 2024. The $250 million deal, signed with the Ethiopian Investment Holdings, was hailed as a new era for the country that prioritizes the next generation of digital industries. Within the first ten months, the country had generated $55 million in revenue from the sector and contributed 2.25% of the global BTC hash rate. The revenue has surged since, with EEP making $220 million over the past year. The miners have kept coming. EEP's most recent data shows that it has signed power purchase agreements with 21 BTC miners, with 19 being foreign-owned and mostly linked to Chinese investors fleeing Xi Jinping's anti-crypto regime. Earlier this year, Chinese miner BIT Mining signed a $14 million agreement with the Ethiopian grid operator to establish a 51 megawatt facility. It claimed that Ethiopia's power was so cheap that it could reuse mining rigs that had become obsolete in its U.S. facilities, where they couldn't mine fast enough to justify the power costs. 'The price of electricity is maybe 70% higher in Ohio than in Ethiopia, sometimes almost double, so it can only run very advanced ASICs…Now we can just move older generation machines into Ethiopia,' the company said at the time. It's not just BIT Mining (NASDAQ: BTCM) that was taking advantage of Ethiopia's low power rates. BitFufu (NASDAQ: FUFU), Bitdeer (NASDAQ: BTDR), Canaan (NASDAQ: CAN), and the Phoenix Group (NASDAQ: PNXGF) have all established mining facilities in the country. EEP projects that by the end of the year, BTC miners will consume a third of all Ethiopia's electricity, and it is concerned that this could be at the expense of other essential sectors. While the miners in the capital, Addis Ababa, enjoy the low power rates, a substantial portion of the country remains off-grid. Some sources say that nearly 60 million Ethiopians still lack electricity. Ethiopia joins a list of countries that have restricted BTC mining due to energy concerns. While a few, like China, have issued a blanket ban for the sector, most have scaled back the energy allocated to miners. Russia, for instance, banned mining during winter when power demand is high. The U.S. is one of a few countries bucking the trend. Since he took over, President Donald Trump has doubled down on making America the BTC mining capital, stating last year that he wants 'all the remaining Bitcoin to be MADE IN THE USA!' Trump's rally has been backed by some red states like Arizona and Kentucky that have passed right-to-mine laws, protecting miners from being targeted by local zoning authorities. The sector received a boost two months ago when the three largest Chinese ASIC manufacturers—Bitmain, MicroBT, and Canaan—announced they would set up production facilities in the U.S. as Trump's tariffs disrupt global supply chains. The three control 90% of the global BTC mining rigs production. Watch: Why Proof of Work is the most secure model of consensus title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Daily News Egypt
31-07-2025
- Business
- Daily News Egypt
Addis Ababa Residents Voice Anger Over Soaring Electricity Bills
A growing number of residents in Ethiopia's capital are expressing outrage over a sharp rise in electricity costs, which many say is straining their already tight household budgets. Social media has been flooded with complaints, prompting calls for immediate explanations from Ethiopian electric utility providers. Residents across various neighborhoods in Addis Ababa report that recent prepaid electricity top-ups are no longer lasting as long as they did just months ago. In interviews with local outlets, several citizens described being shocked by the rate at which their prepaid balances are depleting — without a clear reason or official explanation. 'I used to recharge 1,000 birr and it would last the whole month,' said Martha, a mother of two. 'Now, 800 birr barely gets me through a week. I don't know what changed, but I'm struggling to keep up.' Another resident, Markos, recounted a frustrating experience after he recharged his meter card with 1,500 birr. 'When I tapped the card, the balance only showed 1,200 birr. I went back to the branch to ask, and they had no answers for me,' he said. For lower-income families, the price jump is hitting especially hard. One woman, who asked to remain anonymous, said her household of four is now paying more than double the electricity costs they did earlier this year. 'We're already stretched thin trying to cover rent and groceries,' she said. 'Now electricity has become another unaffordable burden.' Efforts by local media to obtain clarification from the Ethiopian Electric Utility (EEU) and Ethiopian Electric Power (EEP) have so far yielded little information. A representative at a branch office told reporters the issue was 'beyond their scope of authority,' while repeated calls to the headquarters went unanswered. While frustration grows in urban centers, nearly half of Ethiopia's population—particularly in rural areas—still lacks reliable access to electricity altogether. Many had pinned hopes on the Grand Ethiopian Renaissance Dam (GERD), which is projected to more than double the country's current power generation capacity to over 6,000 megawatts. The GERD, Africa's largest hydroelectric project, was partially inaugurated in September and is expected to provide a long-term solution to the country's chronic energy shortages. Officials have touted the project as a potential catalyst for affordable, widespread electrification across the country. However, experts caution that GERD's completion alone may not immediately translate into lower electricity prices for average citizens. Infrastructure bottlenecks, economic inflation, and regulatory inefficiencies may continue to influence energy costs, even as overall power output increases. For now, residents in Addis Ababa say they are left in the dark — both literally and figuratively — as their utility bills soar without clarity or accountability. Many are calling on the government and electricity providers to issue a public explanation and introduce transparent pricing mechanisms to ease the burden on everyday consumers.
Business Insider
02-07-2025
- Business
- Business Insider
Africa's tallest skyscraper project resumes as Ethiopia revives $445 million tower bid
Ethiopia has reignited plans to construct what could become the tallest skyscraper in sub-Saharan Africa, marking a bold signal of the country's long-term vision for economic transformation and urban modernization. Ethiopia plans to construct the tallest skyscraper in sub-Saharan Africa, the $445 million EEP tower. The 62-storey building will be located in Addis Ababa's Kirkos district and will serve as Ethiopian Electric Power's headquarters. The bidding process for the project has reopened to experienced local and international contractors under an EPC contract model. The $445 million project will see the erection of a 62-storey headquarters for the state-owned Ethiopian Electric Power (EEP), positioning the nation at the forefront of architectural ambition on the continent. Initially proposed in 2023, the project was delayed by financial constraints. However, the relaunch of the bidding process for both local and international contractors marks a critical step forward in realizing this transformative vision. Strategically located in the Kirkos district, near Addis Ababa's expanding central business hub, the tower's site further highlights its economic and urban significance. Ethiopia opens bidding process The Ethiopian government recently reopened bidding for the EEP tower, inviting both local and international contractors as part of efforts to revive the $445 million project. The move signals renewed confidence in the country's fiscal outlook. To qualify, contractors must have at least 10 years of experience and have completed three prior projects worth $370 million or more, underscoring the project's scale and complexity. The project will follow an engineering, procurement, and construction (EPC) contract model, with a planned four-year construction timeline. This approach is designed to streamline the entire process, allowing for coordinated planning and efficient execution from design through to completion. The design Beirut-based firm Dar Al-Handasah will design and manage the construction of Ethiopia's revived EEP tower, integrating sustainable practices throughout. Set on a 20,792-square-meter plot, the 62-storey skyscraper will rise to 1,074 feet, surpassing Johannesburg's Leonardo Tower (768 feet) as sub-Saharan Africa's tallest. The design includes three basement levels, a commercial podium, 55 floors of office space with sky gardens, and a rooftop restaurant. With a total floor area of over 2.1 million square feet, the tower will become a landmark hub for business and leisure in Addis Ababa. Once completed, the tower will not only symbolize Ethiopia's infrastructural aspirations but also serve as a central hub for one of the country's most critical sectors—energy. Beyond its architectural significance, the project is anticipated to create thousands of jobs during its construction phase and serve as a catalyst for related urban development.
Zawya
08-05-2025
- Business
- Zawya
Why Kenya depends on Ethiopia, Uganda for power?
Kenya's electricity imports from Ethiopia and Uganda rose by 66.7 percent in 2024 as Nairobi deepened reliance on the two countries to stabilise its power supply, amid rising demand and increased transmission and distribution losses. The latest Economic Survey 2025 shows that Nairobi increased its imports of electricity from the two countries to 1,532.6 GWh in 2024, from 919.3GWh in 2023, at a time when its total installed electricity capacity declined to 3,235.5MW, from 3,243.6MW due to the expiry of Imenti Tea Factory's power purchase agreement and the lower capacity of Muhoroni Gas turbine caused by depreciation. Kenya's local electricity generation remained relatively unchanged at 12,467GWh in the past four years (2021-2024), with transmission and distributive losses accounting for 23.5 percent (3,307.4 GWh) of total supply in 2024, according to the report.'Electricity imports rose by 66.7 per cent to 1,532.6GWh in 2024 due to increased imports from Ethiopia,' the report says. Ethiopian Electric Power (EEP) and Kenya Power signed a power purchase agreement (PPA) for the sale and purchase of electricity in July 2022. Under the deal, Kenya gets a maximum firm capacity of 200MW in the first three years and thereafter a maximum firm capacity of 400MW for the remainder of the 25-year PPA. Kenya Power started importing 200MW of hydropower from Ethiopia in November 2022, with the Ethiopian power constituting 11 percent of the electricity consumed by Kenyans daily. Last month, Kenya Power said that formal talks had started with EEP to allow importation of an extra 50-100MW, underlining Nairobi's reliance on electricity imports to secure its power needs. According to the report, Kenya's total electricity generation and imports increased in 2024, with hydroelectricity generation rising by 36.2 per cent to 3,630.7GWh, due to favourable rainfall in 2024. Thermal declined by 13.5 percent to 1,129.5GWh in 2024, while wind decreased by 10.5 percent to 1,797.7GWh. Geothermal and solar production dropped by 8 percent and 6.3 per cent to 5,551GWh and 460.4GWh, respectively. Read: Kenya's power imports from Uganda rise 18pc in January on high demandDuring the year, 91 percent of electricity was generated from renewable sources -- hydro, geothermal, wind, and solar. Geothermal contributed 44.2 per cent of the total local electricity produced, followed by hydro generation at 28.9 percent. Wind generation accounted for 14.3 percent while solar accounted for 3.7 percent of the total electricity generated. Thermal oil was the only non-renewable energy source, accounting for 8.9 percent. Kenya's total electricity demand increased by 5.1 per cent to 14,101.9GWh in 2024, with domestic demand rising to 10,751.7GWh from 10,320.6GWh in the period. Demand in all categories, save for street lighting, grew during the year. The demand by large and medium (commercial and industrial), and domestic and small commercial categories increased by 4.1 percent and 4.9 percent to 5,515.2GWh and 4,459.1GWh, respectively. Demand for rural electrification increased by 3.9 percent to 684.79GWh while e-mobility consumed 2.8GWh. Meanwhile, Kenya has also been exporting electricity to Uganda and Tanzania with exports to the two neighbouring countries increasing by 26.62 percent to 42.8GWh in 2024, from 33.8GWh in 2023. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
19-02-2025
- Business
- Zawya
Ethiopia signs memorandum of understanding with ATIDI to support PPP renewable energy projects
Addis Ababa, Ethiopia: The Federal Democratic Republic of Ethiopia, represented by the Ministry of Finance and Ethiopian Electric Power (EEP), has signed a Memorandum of Understanding (MoU) with the African Trade Insurance Agency (ATIDI), a leading pan-African multilateral trade and investment insurer. This milestone agreement is designed to accelerate Ethiopia's transition to clean energy by attracting foreign investment into renewable energy projects through ATIDI's Regional Liquidity Support Facility (RLSF). The MoU establishes a framework for collaboration between Ethiopia and ATIDI, ensuring that Independent Power Producers (IPPs) or Public Private Partnerships can leverage RLSF, a liquidity support mechanism developed by ATIDI in partnership with KfW Development Bank and Norad. RLSF provides financial protection to IPPs/PPPs by availing and accelerating payments owed by state-owned utilities, addressing a key challenge in the energy sector by enhancing payment security and financial stability. In his key message H.E. Ahmed Shide, Ethiopia's Minister of Finance, said 'through this partnership, Ethiopia aims to facilitate timely payments to developers, mitigate financial risks, strengthen the bankability of power purchase agreements (PPAs), and enhance the creditworthiness of EEP'. His Excellency further strengthened his message by stating that 'these efforts will create a more attractive investment environment for renewable energy projects'. Ethiopia becomes the 11th ATIDI member state to sign the RLSF MoU joining Benin, Burundi, Côte d'Ivoire, Ghana, Kenya, Madagascar, Malawi, Togo, Uganda and Zambia. Since its inception, guarantees worth USD24.7 million have been approved under the RLSF portfolio; in turn facilitating investments totaling USD373.1 million and the development of 181.95 MW of installed renewable energy capacity across Africa. Ethiopia has made significant strides in expanding its energy sector, primarily relying on hydropower as the backbone of its electricity generation. The Ethiopian government aims to diversify this energy mix by leveraging its vast renewable resources including wind, solar, and geothermal energy to enhance reliability and sustainability. This collaboration marks a significant step towards a more resilient and investor-friendly renewable energy landscape in Ethiopia. With ATIDI's support, the country is poised to achieve its energy transition goals while ensuring financial stability for its power sector stakeholders. Quote from Manuel Moses, CEO, ATIDI "We are honored to partner with the Government of Ethiopia and Ethiopian Electric Power to support the development of the country's renewable energy sector. Through our liquidity support, this collaboration will not only reduce financial risks but also attract more investment into Ethiopia's energy infrastructure. We believe that this partnership will help accelerate the growth of Ethiopia's renewable energy capacity and contribute to the broader goal of sustainable development across the African continent." H.E Minister Ahmed Shide, Minister of Finance, Federal Democratic Republic of Ethiopia 'Ethiopia has embarked on a comprehensive economic reform agenda known as the Homegrown Economic Reform Agenda (1&2). This initiative aims to address structural challenges and promote sustainable economic growth. The key aspects of the reform are creating Macroeconomic Stability; Investment and Trade. Efforts are being made to enhance the investment climate and promote trade by simplifying regulations, improving infrastructure, and encouraging private sector participation. The Regional Liquidity Support Facility (RLSF) is expected to play great role by enhancing the bankability of PPP projects and the sustainable implementation of such projects. The reform also aims to boost productivity in key sectors such as agriculture, manufacturing, and services to drive economic growth and create jobs. Investment Attraction too focuses on creating improved investment climate that has already attracted foreign direct investment, particularly in sectors like energy, manufacturing, and agriculture. We look forward to expanding this positive collaboration with ATIDI to cover additional sectors other than energy.' About ATIDI ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD85 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an 'A/Stable' rating for Financial Strength and Counterparty Credit by Standard & Poor's (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody's, which has now been revised to A3/Positive. More about ATIDI: Media registration link: About the Regional Liquidity Support Facility (RLSF) RLSF is a guarantee instrument provided by ATIDI to renewable energy Independent Power Producers (IPPs) that sell the electricity generated by their projects to state-owned power utilities, located in ATIDI member states that have signed the RLSF Memorandum of Understanding. RLSF was launched in 2017 by ATIDI and the German Development Bank, KfW, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ); in 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards its continued implementation. RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.
