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Ethiopian Electric Power Announces Tariff Hike for Crypto Mining Operations

By Addis Insight October 29, 2025

Addis Ababa, Ethiopia – October 29, 2025
Ethiopian Electric Power (EEP) has issued an official notification to all data mining customers in Addis Ababa, confirming a significant revision to electricity tariffs specifically tailored for cryptocurrency mining operations. The new pricing structure, set to take effect on December 1, 2025, introduces a Time-of-Use (TOU) billing system and an Availability-Based Tariff (ABT) adjustment mechanism, marking a strategic shift to align costs with grid reliability and peak demand management.

Key Highlights of the Revised Tariff Plan:

  • Implementation Date: December 1, 2025
  • Billing Impact: All consumption from December 2025 onward will be charged under the new rates.
  • TOU Structure: Charges will vary by Peak, Off-Peak, and Shoulder periods.
  • ABT Adjustment: Rates increase dynamically when grid availability falls below 80%.

New Availability-Based Tariff (ABT) Schedule (US¢/kWh, inclusive of 15% VAT & 0.5% regulatory fee)

Availability RangeDescriptionBase Tariff @ 4 US¢/kWhAdjusted @ 5 US¢/kWhAdjusted @ 6.5 US¢/kWh
100% – 70%HighNo adjustment4.1945.144
69% – 60%Moderate3.244.1255.075
59% – 50%Medium3.184.0364.986
< 50%Low3.093.9174.867

Note: Adjustment begins when daily average availability drops below 80%.


Strategic Rationale Behind the Revision

In the official letter signed by Wondwosen Teshoma, Director of Energy Trading and Marketing, EEP emphasized that the tariff adjustment is critical to:

  • Ensure financial sustainability of the national grid
  • Support infrastructure upgrades amid rising demand
  • Maintain system reliability during high-load periods
  • Align pricing with actual generation and transmission costs

The revision complies with Article 1.1 and Schedule B of existing Power Purchase Agreements (PPAs), which allow EEP to adjust energy charges in line with approved system tariff changes.


Industry Implications for Crypto Miners

Ethiopia has emerged as a leading destination for Bitcoin and crypto mining due to its abundant hydroelectric resources, particularly from the Grand Ethiopian Renaissance Dam (GERD). However, the new TOU + ABT model introduces cost predictability challenges:

  • Peak-hour mining could see costs rise by up to 110% during low-availability periods.
  • Miners operating at <50% grid availability will face the steepest penalties.
  • Load shifting strategies (e.g., mining during off-peak hours) will become essential for cost optimization.

Industry sources indicate that several large-scale mining farms in the Kotebe and Yeka industrial zones are already evaluating energy storage solutions and demand response technologies to mitigate exposure to penalty tariffs.


Official Statement from EEP

“We remain committed to being a reliable partner in Ethiopia’s digital economy. This revision ensures long-term grid stability while fairly distributing costs during constrained periods.”
Wondwosen Teshoma, Director, Energy Trading & Marketing, EEP


Next Steps for Mining Operators

  • Review updated TOU schedules (to be published separately)
  • Optimize operations to avoid low-availability windows
  • Engage with EEP for customized load management plans
  • Prepare for December 2025 billing transition

For inquiries:
📧 info@eep.com.et
🌐 www.eep.com.et
📞 +251 11 558 0631 / +251 11 558 0607


This tariff restructuring positions Ethiopia at a crossroads: balancing its ambition to become a global crypto mining hub with the realities of grid resilience and cost recovery. Miners who adapt quickly to the new TOU-ABT framework may gain a competitive edge in one of Africa’s most electrified mining ecosystems.

Addis Insight

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