Ethiopia and hydropower
Ethiopia, officially known as the Federal Democratic Republic of Ethiopia, is a country in East Africa that relies heavily on biomass for energy, with charcoal, animal manure, and firewood accounting for 95% of its total energy consumption. Despite having significant hydropower potential, with estimates suggesting around 143 terawatts, only about 2% of this potential has been harnessed. The country has made strides in hydropower development, constructing several facilities since the 1960s, including the Gibe 3 Dam, which has a capacity of 1,870 megawatts and began operations in 2015. The largest project to date is the Grand Ethiopian Renaissance Dam on the Abay River, expected to generate 5,250 megawatts upon completion, which occurred in 2022.
Ethiopia's government has initiated programs to electrify rural areas, aiming to increase the national grid capacity significantly in the coming years. However, projections indicate that population growth and economic development may outpace these efforts to provide electricity for all citizens. In addition to hydropower, the country is exploring other energy sources, including natural gas and wind energy, with plans to expand installed wind capacity to 7 gigawatts by 2030. Overall, Ethiopia's energy landscape reflects both its challenges in meeting power demands and its potential for sustainable energy development through hydropower and other renewable sources.
Subject Terms
Ethiopia and hydropower
Official Name: Federal Democratic Republic of Ethiopia.
Summary: The primary energy sources for most Ethiopians are charcoal, animal manure, and firewood. Construction of hydropower facilities on major rivers is expected to boost the power supply but remains inadequate, and the country suffers from a huge power deficit.
Ethiopia has abundant hydropower potential, but only about 2 percent of the economically feasible hydroelectric power potential has been developed. The largest source of energy is biomass, which provides 95 percent of the nation’s total energy consumption.
Between the years 1960 and 1972, the first three hydroelectric generating facilities of Ethiopia were constructed in the Awash River Basin. The three plants that were constructed on the river were Awash I (Koka), with a capacity of 54,000 kilowatts; Awash II, with a capacity of 32,000 kilowatts; and Awash III, with a capacity of 32,000 kilowatts. In 1974, the Fincha River facility in southwestern Ethiopia opened with a generating capacity of 84,000 kilowatts. Other small power-generating facilities included those at Bahir-Dar (7,680 kilowatts) and Aba Samuel (6,560 kilowatts).
Estimates indicate that the total hydropower potential could be about 143 terawatts. The main sources of this potential were thought to be the country’s rivers, such as the Abay (Blue Nile, with about 80 terawatts), the Wabeshebele (about 21 terawatts), and the Omo (about 16 terawatts). The remaining 26 terawatts could come from other rivers, such as the Tekezé, Baro, Awash, and Genale.
Electrification Program
In 2007, the government launched a $1.67 billion rural electrification program. Officially named the Universal Electrification Access Program, it called for electrifying more than 6,000 rural towns and villages for a total of 24 million people in 2010. In 2024, the nation's 5,200 megawatt (MW) electrical grid capacity reached roughly sixty percent of the population. The country intended to increase that power generation capacity to roughly 17,000 MW over the following decade. However, researchers noted that population growth and economic development may cause that increase to be insufficient for bringing electricity to the entirety of Ethiopia.
Hydropower and Dam Construction
Ethiopia contains a number of hydropower facilities. One of the largest is the 1,870-megawatt Gibe 3 Dam, which was completed in 2015. More than 500 megawatts of the electricity generated by the power plant is planned to be exported to Kenya, Djibouti, and Sudan. The Gibe 1 Dam was completed in 2004, and the Gibe 2 Dam became operational in 2009. Sino Hydro Corporation (a Chinese state-owned hydropower engineering and construction company) is responsible for building the dams. In March 2011, Ethiopia began constructing the nation’s biggest dam over the Abay River, with a planned cost of $ 4.8 billion; it was expected to generate 5,250 megawatts within five years and to be constructed by the Italian construction firm Salini. This project, which was completed in 2022, was later named the Grand Ethiopian Renaissance Dam.
Oil imports and consumption are more than 37,000 barrels per day. There is no oil refinery; hence, all refined products, including gasoline and jet fuel, are imported. There has been exploration for oil, but no commercial deposits have been found. Among the companies that have explored for oil are Zhongyuan Petroleum Exploration Bureau (China), Lundin (Sweden), Afar Exploration (United States), Epsilon Oil (Canada), Petronas (Malaysia), Trans Global Petroleum (United States), Africa Oil (Canada), and Sinopec (China).
In 2007, Petronas paid the government of Ethiopia $80 million for the Calub and Hilala natural gas fields in the Ogaden Basin, in southeastern Ethiopia. Under a production-sharing agreement, Petronas agreed to pay a 35 percent income tax rate and a 3 percent royalty fee to the Ethiopian government. The natural gas fields of Calub and Hilala are estimated to hold 4 trillion cubic feet of reserves. Derba East Coal Mining PLC, a joint venture of Debra MIDROC and East Africa Holdings, has plans to produce more than 1 million tons of coal per year. In 2022, the government certified the presence of roughly seven trillion cubic feet of natural gas reserves in the Ogaden Basin.
In 2008, the government of Ethiopia signed a 220-million-euro contract with Vergnet of France to construct a wind farm. The farm, known as Ashegoda Wind Farm, is the largest wind farm in sub-Saharan Africa and produces 120 megawatts of energy. The country plans to reach around 7 GW of installed wind energy capacity by 2030.
Bibliography
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"Hydropower in Ethiopia." USGS, 2021, eros.usgs.gov/media-gallery/image-of-the-week/hydropower-ethiopia. Accessed 1 Aug. 2024.
Ofcansky, Thomas P., and LaVerle Berry, eds. Ethiopia: A Country Study. Washington, DC: Library of Congress, 1991.
Photius.com. “Ethiopia Energy Resources.” www.photius.com/countries/ethiopia/economy/ethiopia‗economy‗energy‗resources.html. Accessed 1 Aug. 2024.
U.S. Energy Information Administration. “Country Analysis Brief: Ethiopia.” www.eia.gov/countries/country-data.cfm?fips=ET. Accessed 1 Aug. 2024.
World Bank. “Ethiopia: Implementation Completion Report for an Energy II Project.” Report 35573, Vol. 1 of 1, November 2007.