Ethiopia doubles power generation capacity in seven years, expanding renewable energy push

Ethiopia has more than doubled its electricity generation capacity over the past seven years, driven by large-scale hydropower development and a rapid expansion of its national grid, authorities said.

According to the state-owned Ethiopian Electric Power, installed generation capacity rose from about 4,462 megawatts to 9,752 megawatts, marking a significant milestone in the country’s long-term energy expansion strategy.

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The utility said the growth positions Ethiopia as a leading renewable energy producer in Africa, with almost all of its electricity generated from clean sources including hydropower, wind, solar and geothermal.

“We have significantly expanded installed capacity, making Ethiopia one of Africa’s renewable energy hubs,” said Moges Mekonnen, communications director at Ethiopian Electric Power.

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He added that the country’s electricity access rate has also improved, rising from about 44 percent to roughly 54 percent in recent years, supported by continued infrastructure investment.

The national transmission network now spans more than 21,000 kilometres of high-voltage lines, enabling electricity distribution to wider parts of the country, including previously underserved rural regions.

Hydropower remains the dominant source of electricity generation, while wind contributes nearly 5 percent and geothermal energy accounts for less than 1 percent of total output, according to official figures.

Ethiopia’s rapid expansion has been anchored by major infrastructure projects, including the Grand Ethiopian Renaissance Dam, one of Africa’s largest hydropower installations, which was inaugurated last year and has become a central pillar of the country’s energy strategy.

The dam is expected to significantly boost electricity supply, with authorities viewing it as critical to both domestic electrification and potential regional power exports.

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Officials say the government is now focusing on diversifying renewable energy sources beyond hydropower, including scaling up solar and geothermal projects to build a more resilient and climate-friendly energy system.

“The country continues to rely almost entirely on renewable energy, and efforts are underway to expand alternative sources,” Mekonnen said.

The expansion comes as Ethiopia pursues broader economic transformation goals, using improved energy access to support industrialisation, manufacturing growth and digital infrastructure development.

Despite the progress, challenges remain in fully extending electricity access across the country, particularly in remote and rural areas where grid expansion is costly and logistically difficult.

Power reliability is also a continuing concern, with demand rising faster than distribution infrastructure in some urban centres.

However, officials say ongoing investments in generation and transmission capacity are expected to ease supply constraints in the coming years.

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The government has also indicated interest in strengthening regional electricity trade, leveraging its surplus renewable energy capacity to supply neighbouring countries in the Horn of Africa.

Energy analysts say Ethiopia’s progress reflects one of the fastest expansions of renewable-based electricity systems in Africa, though they caution that sustained investment will be required to maintain momentum and meet rising domestic demand.

For now, the doubling of capacity marks a major milestone in Ethiopia’s ambition to become a regional energy powerhouse anchored on renewable resources.

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