Nation advances renewable energy initiatives, solidifying African leadership position

Ethiopia is rapidly consolidating its position as one of Africa’s renewable energy champions, with recent reports highlighting both its impressive achievements and the challenges that lie ahead.According to the latest consolidated analysis by Okan Partners and the Africa CEO Forum, Ethiopia now ranks among the top five countries in Africa for renewable energy capacity, boasting an installed base of approximately 6 GW-surpassed only by South Africa and Egypt on the continent. The report notes, “Ethiopia is one of just five African countries where renewables make up over 80% of the national energy mix, with hydropower dominating the landscape”.This leadership is underpinned by a robust portfolio of 19 operational renewable energy facilities, including flagship projects such as the Grand Ethiopian Renaissance Dam (GERD) and the Aysha Wind Farm 2. Ethiopian Electric Power (EEP) reports that these plants currently generate 6,879 MW, with annual output reaching 23,059 GWh. The country’s total power production capacity is projected to more than double, from 5,656 MW today to 12,000 MW, as ongoing projects like GERD, Koisha Hydropower, and Asella Wind Power come online.Fisseha Getachew, Public Relations and Communication Manager at EEP, commented, “With the full completion of our major projects, Ethiopia’s annual electricity generation capacity will rise to 7,240 MW, positioning us as a continental leader in clean energy production”.Ethiopia’s renewable energy expansion is closely tied to its national development agenda. The government’s “Energy Africa Ethiopia Compact” aims for universal electricity access by 2025, with a target of 35% off-grid electrification. The Compact, refreshed in 2021, emphasizes coordinated donor support and policy alignment to boost off-grid investment and market conditions. “The collaborative approach is intended to generate donor commitment and increase support in the off-grid sector to help the Government of Ethiopia achieve universal electricity access by 2025,” the report states.Sustainability is also at the forefront. The Okan Partners report highlights Ethiopia’s Hawassa Industrial Park as a model for integrating green technologies, including zero liquid discharge water treatment and renewable energy supply. Such initiatives, the report argues, “can serve to attract greater investment by providing a competitive edge in the global market”.Despite these advances, the sector faces persistent hurdles. The Okan Partners and Africa CEO Forum analysis points to underdeveloped and unreliable energy networks as a critical bottleneck, noting that “80% of businesses in Sub-Saharan Africa face frequent power cuts.” Ethiopia, while ahead of many peers, is not immune to these issues, with public energy companies often overwhelmed and in need of infrastructure modernization and financial strengthening.Moreover, Africa as a whole attracts only 3% of global energy investment, a figure the report attributes to “unharmonized legal and regulatory frameworks” and “fragile political and economic situations, preventing the provision of solid financial guarantees”.