Ethiopia expands renewable energy infrastructure to drive industrial growth

Ethiopia is transforming its natural resources into a foundation for industrial growth by expanding its renewable energy infrastructure.

The government is utilizing the country's rivers, wind, and sunlight to power factories, modernize agriculture, and support digital services. A central part of this strategy involves the Grand Ethiopian Renaissance Dam (GERD), which harnesses the Abbay River to provide a massive increase in national power capacity.

The country aims to move beyond just generating electricity to creating a resilient and diversified energy mix. While hydropower remains the primary source, Ethiopia is developing wind farms in Adama and Ashegoda and exploring geothermal potential to protect the grid against seasonal rainfall changes. The International Energy Agency notes that the government must prioritize integrated system planning and grid reliability to ensure that power reaches rural communities and productive sectors.

Ethiopia has increased its national electricity access from roughly 12 percent in the early 2000s to approximately 35 percent in 2024. However, the government still faces the challenge of providing power to the 85 million people currently without access. To meet its goal of universal access by 2035, the state is focusing on grid modernization and last-mile connections. The energy transition also serves as a tool for regional cooperation in East Africa.

Ethiopia is increasing its electricity exports to Kenya, with plans to raise the supply from 200 to 400 megawatts. These interconnections with Kenya, Djibouti, and Sudan help neighboring countries access power while creating a network of economic interdependence. Ethiopia plans to share these experiences regarding development-focused energy transitions during international climate discussions.