Habtamu Itefa Geleta, Ethiopia’s Minister of Water and Energy, is set to be a highlighted speaker at the African Energy Week (AEW): Invest in African Energy 2024 conference taking place from November 4th to 8th in Cape Town. This conference is regarded the largest energy event in Africa, and Geleta’s participation underlines Ethiopia’s unwavering commitment to enhancing its energy sector via substantial investments and purposeful international alliances.
Ethiopia’s current power generation capacity amounts to 5.2 GW, and there are ambitious plans to elevate this figure to 17 GW within the next ten years. Even though renewable energy establishes the main energy source, the 2022 governmental confirmation of seven trillion cubic feet of natural gas in the Ogaden Basin has presented fresh investment opportunities. This relatively untapped sector has the potential to revolutionize both Ethiopia’s and the wider region’s energy model. Minister Geleta is slated to elaborate on the country’s potential in this domain during the conference, in dialogues with investors and regional colleagues.
The AEW: Invest in African Energy has evolved into the preferred platform for project administrators, financiers, technology firms, and the government to sign deals in African energy. More information about this groundbreaking event is accessible at www.AECWeek.com.
Ethiopia’s potential for electricity generation is estimated at over 60 GW, harnessed from hydroelectric, wind, solar, and geothermal sources. Hydropower continues to be the main energy source, demonstrated by projects like the 6 GW Grand Ethiopian Renaissance Dam and the 2.1 GW Koysha Hydro Power dam on the Omo River. As of January 2024, the aforementioned dam’s completion stood at 94%. Upon completion, the dam is set to be Africa’s largest hydroelectric power plant.
Simultaneously, Ethiopia’s wind power sector is expanding, evidenced by projects including Ashegoda and Adama wind farms, which collectively generate over 350 MW. Ethiopia Electric Power (EEP), the state-owned company, inked a $600 million deal in December 2023 for a 300 MW wind farm in the eastern Somali region with AMEA Power, a UAE-based project developer. In addition, under the World Bank’s Scaling Solar program, EEP has also partnered with the International Finance Corporation to develop up to 500 MW of solar power. Private sector involvement in project development is emphasized by the government, with public-private partnerships and independent power producer schemes being encouraged.
Moreover, Ethiopia boasts an estimated geothermal potential of over 10 GW. A potential $35 billion investment pipeline is projected for Ethiopia and Kenya to develop geothermal energy within the East African Rift. By 2050, these two countries are projected to yield 90% of Africa’s planned 13 GW of geothermal power.
Recently, the African Development Bank (AfDB) allocated $8 million to support Ethiopia’s Renewable Energy and Agriculture Modalities mini-grid program, an initiative aimed at merging mini-grids with agribusiness operations. Half of the program’s funding comes from the AfDB-managed Sustainable Energy Fund for Africa, offering concessional loans, grants, and risk mitigation. AfDB has further sanctioned a $104 million grant for an improved transmission project to boost Ethiopia’s electrical supply. The project involves constructing 157 km of transmission lines and associated substations nearby Harar, Jijiga, and Farem cities.
NJ Ayuk, Executive Chairman of the African Energy Chamber, highlighted Ethiopia’s proactive position in promoting sustainable energy development while partnering with global stakeholders. With plentiful opportunities for natural gas and renewable energy industries, Ethiopia is poised to play a pivotal role in fulfilling East Africa’s long-term energy needs.
During the AEW: Invest in Africa Energy 2024 conference, Minister Geleta will participate in high-profile panels and discussions to promote Ethiopia’s investment potential and highlight the government’s approach towards sustainable energy development.
