January 23, 2025

Crypto mining to double Ethiopia's energy use

January 23, 2025

Abu Dhabi-listed blockchain & crypto mining company, Phoenix Group, has signed an 80 MW power purchase agreement with Ethiopia Electric Power (EEP). It joins a list of over 25 crypto mining companies that have entered Ethiopia. Most of the companies are Chinese-owned, which emigrated after China banned crypto mining in 2021.

  • Phoenix's entrance into Ethiopia is part of its broader expansion plans targeting countries with strong energy projects and operations are set to commence in the second quarter of 2025. Founded in 2017, it enjoys backing from well-endowed Abu Dhabi’s International Holding Company.

  • Ethiopia's crypto mining industry is experiencing rapid growth, with power consumption expected to more than double by the end of 2025. Currently, these companies operations consume an estimated 600 MW, contributing to EEP's $55 million revenue from Bitcoin miners in 2024. This figure is projected to surge to $123 million in 2025 as the industry expands.

  • Our take: Excess electricity generated at night can support crypto mining for more revenue generation… Read more (2 min)

The Zambian government has received a $292 million grant for the Zambia-Tanzania Interconnector Project (ZTIP). This comes after Zambia experienced the worst drought in 2024, which affected its hydropower generation and cost the country approximately $1.3 billion, roughly 5% of its GDP.

  • The funding consists of $245 million from the International Development Association (IDA), $17 million from the UK Foreign Commonwealth & Development Office (FCDO) through the Energy Sector Management Assistance Program (ESMAP), and $30 million from the European Union (EU).

  • It is expected to lift Zambia’s low access to sustainable and affordable energy and support the country's energy needs and regional connectivity.

  • Our take: With the open electricity market expected to start for the East Africa Power Pool, competition between electricity sellers is expected to lower prices… Read more (2 min)

Transgrid Enerco Limited has signed a Share Purchase Agreement (SPA) to acquire a 60% equity stake in Eko Electricity Distribution Company (EKEDC). The deal, valued at over $200 million, aims to give Transgrid Enerco the control necessary to implement more efficient revenue collection mechanisms.

  • Transgrid Enerco Limited is a strategic consortium comprising North South Power Company Limited (NSP), Axxela Limited, and the Stanbic IBTC Infrastructure Growth Fund (SIIF).

  • EKO Disco is one of the best-performing discos in Nigeria, with a collection efficiency of approximately 85%, exceeding the average for all discos. It also has a higher metering rate of 63%, surpassing the 46% average. The lack of meters is costing Nigeria Discos billions in annual revenue.

  • Our take: Prioritising smart meter implementation should begin with the commercial and industrial sectors… Read more (2 min)

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A solar technician from Optimum Tracker poses for a photo in Nigeria during panel installation

Events

📅 Tanzania to host East Africa Energy Cooperation Summit 2025 (Jan 29 - 30)

📅 Kenya to host 7th Edition PowerTech Africa (Jan 30 - 31)

📅 South Africa to host Solar Power Africa 2025 (Feb 10 - 12)

📅 Ethiopia to host 5th Solar Africa 2025 (Feb 18 - 20)

Jobs

👔 Smart4Energy seeks a Head of Asset Operations (Nigeria)

👔 EDF seeks a Renewable Energy Project Development Manager (Cote d'Ivoire)

👔 Safaricom PLC seeks  Senior Lead, Energy Operations and Support (Kenya)

Various 

📢 Somalia issues tender for solar-plus-storage systems at educational institutions

📢 Tunisia issues tender for the second round of its 200 MW solar program

📢 Teraco begins construction of 120 MW utility-scale solar power project

Seen on LinkedIn 

Kabir Malik, Senior Economist at World Bank Group, says, “Electricity access, without reliable and affordable supply, will have limited development impact.”

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