Ethiopia, under its Growth and Transformation Plan (GTP), envisions becoming a regional renewable energy hub in East Africa by 2015. However, Ethiopia has roughly 2,000 MW of installed generation capacity to serve its population of around 90 million people and has little experience with private sector-led energy projects. These constraints limit growth in key areas of Ethiopia’s economy, including the agricultural and industrial sectors. At the same time, Ethiopia is endowed with abundant renewable energy resources, including 45,000 MW in additional hydropower potential, more than 10,000 MW from untapped geothermal resources (see landmark Corbetti transaction below), and significant wind and solar generation opportunities throughout the Rift Valley. Within 30 years, Ethiopia aspires to develop 80,000 MW and become a major power exporter. Private sector investment will be critical to supporting this development vision.
Last updated: June 02, 2014