Ethiopia uses the Renaissance Dam to mine Bitcoin: an economic opportunity or an energy crisis?

Addis Ababa -
Ethiopia uses the Renaissance Dam to mine Bitcoin: an economic opportunity or a renewable energy crisis with Bitcoin
The Grand Ethiopian Renaissance Dam, which cost around 4.8 billion dollars, is expected to produce 5150 megawatts of electricity, allowing Ethiopia to export energy to neighboring countries, as well as use it domestically. However, a portion of the surplus electricity has been allocated to Bitcoin mining activities, which require significant energy and are considered a profitable global sector.
According to local reports, the Ethiopian Electric Power Company has signed agreements with 21 companies, most of them Chinese, to supply them with the necessary electricity for Bitcoin mining at competitive prices of about 3.14 US cents per kilowatt-hour.
Local challenges
Despite the official optimism, the use of the dam for cryptocurrency mining has sparked internal and external criticisms. About half of Ethiopians suffer from electricity shortages, making it a priority to provide energy to homes and public facilities urgent.
Some observers believe that the government's focus on Bitcoin mining may exacerbate the social crisis, especially in rural areas lacking basic infrastructure.
Political and economic dimensions
This decision comes at a time when Ethiopia is witnessing regional tensions due to the Renaissance Dam, especially with the downstream countries, Egypt and Sudan. It is feared that the use of the dam for commercial purposes beyond local electricity generation will deepen political disputes.
While the Ethiopian government hopes that Bitcoin mining will create job opportunities and increase revenue, the question remains about the ability of this project to reconcile economic and development goals, especially in light of the urgent need to improve the standard of living and provide basic services.