Ethiopia Doubles Power Capacity in Renewables Push

Ethiopian Electric Power says Ethiopia has more than doubled its generation capacity in seven years and expanded electricity access, underscoring ambitions to become a leading renewable energy hub in Africa.

The utility reported that national electricity access has risen from 44 per cent to about 54 per cent, reflecting sustained investment and policy reforms across the energy sector.

According to Moges Mekonnen, installed capacity has surged from 4,462 megawatts to 9,752 megawatts over the period, marking what he described as a “major leap” in the country’s energy development.

The expansion has been driven by extensive infrastructure build-out, including more than 21,000 kilometres of transmission lines spanning 132 to 500 kilovolts, enabling power to reach wider parts of the country.

Ethiopia’s energy mix remains overwhelmingly renewable, with close to 100 per cent of electricity generated from hydropower, wind, solar and geothermal sources. Hydropower continues to dominate, while wind contributes around 4 to 5 per cent and geothermal less than 1 per cent.

Officials say efforts are under way to diversify the mix further, reducing exposure to climate variability and strengthening system resilience.

Flagship projects have played a central role in the expansion, notably the Grand Ethiopian Renaissance Dam, alongside the Aysha II Wind Power Project and the Asella Wind Farm.

Electricity demand is rising rapidly, increasing by more than 20 per cent annually as industrialisation, urbanisation and economic activity accelerate.

Despite the growth, system losses, electricity lost during transmission and distribution, remain relatively low at between 5 and 6 per cent, within internationally accepted thresholds. Mr Mekonnen attributed this to continued investment in substations and distribution networks, while noting that further reductions remain a priority.

Looking ahead, Ethiopia aims to achieve universal electricity access within five years through a combination of grid expansion and off-grid solutions. Grid access is projected to reach between 75 and 78 per cent, with the balance supplied through technologies such as solar and biogas.

The country is also strengthening its role in regional power trade, aligning with the African Union’s Agenda 2063, which prioritises infrastructure connectivity across the continent.

Ethiopia already exports electricity to Sudan, Djibouti, Kenya and Tanzania, with new agreements under discussion with South Sudan. Interest has also been expressed by Somalia and Somaliland.

Officials say plans are in place to expand exports beyond neighbouring markets by leveraging third-party transmission networks to access Southern Africa.

Revenue generated from electricity exports is being reinvested into domestic infrastructure, supporting further expansion projects and reducing reliance on external financing. The Aysha II wind project is among initiatives now benefiting from internal funding following earlier financing constraints.

Data from Ethiopian Electric Power shows that the country generated about 24,970 gigawatt-hours of electricity in the first nine months of the current fiscal year, yielding 90.16 billion birr in combined domestic and export revenue.

Foreign currency earnings from power exports reached $366 million over the same period, up by $138 million compared with the previous year, highlighting the growing importance of electricity trade to the national economy.

Mekonnen said the progress achieved so far provides a strong foundation for further expansion, emphasising that continued investment and diversification will be critical to sustaining momentum.

With demand rising and regional integration deepening, Ethiopia’s renewable energy drive is expected to play an increasingly important role in supporting economic growth, improving living standards and advancing the transition towards a low-carbon future.