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Ethiopia Uses Grand Ethiopian Renaissance Dam to Mine Bitcoin: Economic Opportunity or Energy Crisis?

Addis Ababa -

Ethiopia Uses Grand Ethiopian Renaissance Dam to Mine Bitcoin: Economic Opportunity or Energy CrisisRenewable Energy with Bitcoin

The Grand Ethiopian Renaissance Dam, which cost about $4.8 billion, is expected to produce 5,150 megawatts of electricity, allowing Ethiopia to export energy to neighboring countries, in addition to using it internally. However, part of the surplus electricity has been allocated to Bitcoin mining activities, which require large amounts of energy and are considered a profitable sector globally.

According to local reports, the Ethiopian Electric Power Company has signed agreements with 21 companies, mostly Chinese, to provide them with electricity needed for Bitcoin mining at competitive prices of about 3.14 US cents per kilowatt hour.

Domestic Challenges

Despite official optimism, the use of the dam to mine cryptocurrencies has drawn criticism at home and abroad. About half of Ethiopia’s population suffers from electricity shortages, making it a priority to provide power to homes and public facilities.

Some observers believe that the government’s focus on Bitcoin mining could exacerbate the social crisis, especially in rural areas that lack basic infrastructure.

Political and economic dimensions

The decision comes at a time when Ethiopia is experiencing regional tensions over the Grand Ethiopian Renaissance Dam,