According to CryptoPotato, Chinese Bitcoin miners are turning their attention to Ethiopia in search of cheap energy and a favorable climate. Last spring, containers near an electric substation connected to the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydroelectric project, signaled the arrival of Chinese miners.
Affected by China's regulatory restrictions, local Bitcoin miners have been looking for locations that offer cheap electricity and friendly regulations. Ethiopia has one of the lowest electricity costs in the world and the government is increasingly accepting of the presence of miners, which provides Bitcoin miners with a unique opportunity amid growing global scrutiny of the industry's energy consumption and environmental impact.
Luxor Technology estimates that Ethiopia has become one of the main destinations for Bitcoin mining equipment shipments, with Chinese miners accounting for a significant share. These miners benefit from Ethiopia's abundant hydropower resources and competitive electricity prices provided by the Ethiopian Electric Power Company (EEP). Ethiopia has an installed power generation capacity of 5.3 billion watts, mainly from renewable hydropower, making it an ideal place for miners seeking sustainability.
Despite its former dominance in bitcoin mining, Chinese companies face stiff competition in traditional hubs like Texas. EEP charges a fixed rate of 3.14 cents per kilowatt-hour, comparable to Texas rates but more stable. In addition, Ethiopia’s mild climate matches the optimal operating conditions for mining equipment.
