Ethiopia generates most of its electricity from renewable energy, mainly hydropower. The country is strategically expanding its energy sector, aiming for a more diverse and resilient mix. Currently, Ethiopia's energy production is heavily reliant on hydropower, which constitutes about 90% of its generated electricity but is vulnerable to climate-induced droughts. To address this, the government is implementing key hydropower, geothermal, wind, and solar projects. Ethiopia's renewable energy portfolio is broad and includes significant hydroelectric capacity, along with wind, solar and geothermal power. This is a source of renewable energy that the country can generate on over 60,000 megawatts (MW). To accelerate energy sector development, the Ethiopian government launched initiatives such as the Scaling Solar program, and the already operational Grand Ethiopian Renaissance Dam (GERD), with an installed capacity of 1,550 MW, demonstrating its efforts in this direction. Under the Nationally Determined Contributions (NDCs) to the Paris Agreement, Ethiopia aims to achieve carbon neutrality by 2025, with a target of reducing greenhouse gas emissions by 68.8%. Meanwhile, Ethiopia has yet to achieve its target of carbon neutrality, and the country is balancing the transition to renewable energy sources with efforts to address energy poverty and promote economic growth.
Electricity supply
In 2011, over 96% of Ethiopia's electricity was generated from hydropower. The country began a large program to expand electricity supply in the 2010s from 2,000 MW to 10,000 MW. This was to be done mainly with renewable sources. Wind and geothermal were included to offset seasonal differences in water levels. Ethiopia plans to export electricity to neighboring countries but the plan is contingent upon transmission lines being upgraded and expanded. Most of the energy needs of Ethiopia are filled by biofuels for cooking, heating, and off-grid lighting. Petroleum, including gasoline, diesel and kerosene supply less than 7% of the country's energy supply. Solar photovoltaics is being promoted to replace fuel-based lighting and off-grid electrical supply with a solar panel assembly plant opening in Addis Ababa in early 2013. The majority of Ethiopia's population live in rural areas and very few have access to electricity. Ethiopia hasn't reached its carbon neutrality goal currently, the nation is balancing between the switch to renewable energy sources and ongoing initiatives to combat energy poverty as well as advancing economic growth. This aim was set through their ambitious three-stage Growth and Transformation Plan, Ethiopia seeks to transform itself into a modern economy by 2025. According to the Ministry of Water and Energy, as of 2018, only 23% of the national populace has access to grid electricity. That figure falls even further to 10% when moving to rural areas – a figure that's smaller than the 17% average found across the rest of Africa. Drought frequency, flooding, poor land management techniques, and a rapidly growing population all have increased the situations direness. As of 2018, Ethiopia had launched the National Electrification Program which aimed for 65% of the population to be grid-connected by 2025.
Hydropower Hydropower Dams built in Ethiopia provided over 1,500 MW of capacity by 2010. The four largest dams were built between 2004 and 2010. Gilgel Gibe III added 1,870 MW in 2016. The Grand Ethiopia Renaissance Dam (GERD), a key element of the country's energy expansion strategy, is expected to significantly increase the nation's energy capacity. With a planned capacity of 5,150 MW, GERD was 90% complete as of March 2023 and began producing 375 MW from one turbine in February 2022. This project is not solely focused on energy generation; it is also regarded as a potential contributor to industrialization and economic growth, with possibilities for electricity exports. Complementing GERD is the Koysha Hydropower Dam, which, once operational, will be the second-largest dam in Ethiopia with a capacity of 2,170 MW. Over 70% of the freshwater resources that Ethiopia has access to can be found at the Blue Nile River Basin. Here, three river systems, the Abbay (44%), Akobo River (20%), and Tekezé (6%) provide the country with vital water resources. Ethiopia's government is planning on tapping into this technology five-fold in the coming years. Egypt has expressed concerns that their water rights are being violated by these upstream dams but Ethiopia has no water treaty with Egypt.
Wind power Ethiopia plans 800 MW of wind power. As the dry season is also the windy season, wind power is a good complement to hydropower. Ethiopia has benefitted from the creation and sustainment of two large wind power systems. In October 2013 the largest wind farm on the continent, the Adama plants, started capturing energy in Ethiopia. The Adama 1 plant has a capacity to produce 51 MW while the Adama 2 plant has a capacity to generate 51 MW. Another farm of note is the Ashegoda wind farm and the Ashegoda Expansion wind farm which together produce roughly 120 MW of electricity. The Chinese firm Hydrochina estimated total wind power potential to be as high as 1.3 million MW.
Solar Power
Ethiopia has ample solar energy potential and is one of the most solar-rich places in Africa, with an average total daily solar radiation of 5-7 kWh/m². But their growth has been tightly limited by the high upfront costs involved in producing and installing solar panels. Establishing solar projects which requires an initial investment of one to two million dollars per megawatt, proposing a financial challenge on a developing nation such as Ethiopia.
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