Ethiopia stands on the threshold of a major industrial transformation, entering a decisive phase in which energy will determine both the pace and resilience of progress. The government’s vision is taking shape through ambitious projects across the country, including the construction of over 20 industrial parks and the development of a 4,744-kilometre electric-powered national railway. These initiatives symbolise Ethiopia’s determination to achieve sustainable industrialisation, but they all hinge on one decisive factor — energy. Without a reliable and sustainable electricity supply, factories and manufacturing facilities cannot operate at full capacity, slowing the momentum of national development.
Despite Ethiopia’s impressive strides, energy access remains limited. According to the Ethiopian Investment Commission, about 64 million citizens still live without access to electricity. Approximately 13 million households continue to rely on traditional energy sources — such as charcoal, fuelwood, dung cakes, and agricultural residues — which are both environmentally harmful and hazardous to human health.
Meanwhile, demand for electricity is rising rapidly — by 30–35% each year, while industrial demand, according to long-term forecasts, is expected to grow at an average annual rate of 11.6% until 2030. Currently, most of Ethiopia’s electricity comes from hydropower, which dominates national generation. However, frequent droughts and seasonal fluctuations in water levels often lead to shortages and blackouts. This instability leaves industrial operations vulnerable, highlighting the urgent need for a more resilient energy system.
To address this challenge, Ethiopia is expanding investments in renewable and alternative energy sources. The government’s 10-year Development Plan emphasises the diversification of power generation through solar, wind, and geothermal projects, in partnership with private investors. The aim is to increase installed generation capacity from 4,500 megawatts to around 19,900 megawatts by 2030. This diversified energy portfolio will not only enhance energy security but also contribute to climate resilience. Yet, for continuous, round-the-clock electricity needed by large-scale industrial operations, dependable baseload generation remains essential — and this is where nuclear energy could play a pivotal role in Ethiopia’s future energy mix.
Modern nuclear power technologies enable reliable, low-carbon electricity generation from a relatively small volume of fuel. Unlike hydropower or solar, nuclear generation is unaffected by weather conditions, making it an ideal complement to other energy sources. For Ethiopia, this reliability could prove crucial in powering industrial parks, metallurgical and chemical plants, and the expanding national railway network. By integrating nuclear energy into its energy mix, Ethiopia could not only meet future energy demand but also strengthen its technological base, positioning itself as a regional leader in sustainable industrial growth.
Ethiopia has already taken significant steps towards international cooperation in the peaceful use of atomic energy, working closely with Russia and the International Atomic Energy Agency (IAEA). In 2025, Rosatom and the Ethiopian Electric Power Corporation signed an Action Plan to advance the country’s first nuclear power plant project. This partnership encompasses developing a detailed roadmap, conducting a feasibility study, and implementing training programmes for Ethiopian specialists. Besides, Ethiopia’s commitment to building a national nuclear sector is underscored by the decision of the Council of Ministers to establish the Ethiopian Nuclear Energy Commission (ENEC), mandated to coordinate the development of peaceful nuclear technologies and ensure compliance with international nuclear safety standards.
The IAEA also supports Ethiopia’s efforts to explore nuclear power within its national energy diversification strategy. Director General Rafael Mariano Grossi has reaffirmed the Agency’s readiness to provide guidance on technical, regulatory, and safety frameworks in line with international standards. Moreover, through the IAEA’s Rays of Hope programme, Addis Ababa’s Black Lion Hospital will receive a linear accelerator to enhance cancer treatment, strengthening the nation’s healthcare capacity.
Through a combination of a diversified energy mix, innovative technologies, and strong international partnerships, Ethiopia could overcome its energy challenges and accelerate industrial transformation. A reliable mix of hydropower, solar, and future nuclear baseload generation will drive industrial parks, expand transport infrastructure, and sustain technological development.
Beyond economic considerations, reliable electricity has the power to transform education, healthcare, and digital connectivity, fostering inclusive growth across all regions. Energy, therefore, is more than an infrastructure priority; it is the engine of Ethiopia’s long-term prosperity, resilience, and human development. By powering both industries and communities, Ethiopia illuminates the path to a brighter and more sustainable future.
