Ethiopia has earned a whopping $47.5 million from selling electricity to its neighboring countries in the first half of the current fiscal year, according to the state utility firm Ethiopian Electric Power (EEP).
The East African nation, which has abundant renewable energy resources, exported power to Djibouti, Kenya, and Sudan from July 8, 2023, to January 7, 2024. The EEP said in a press release issued on Wednesday that it plans to sell electricity to another East African country, Tanzania, soon.
Ethiopia’s energy exports are part of its broader vision to economically integrate the region through electricity infrastructure. The country has also embarked on several mega projects to boost its power generation capacity and meet the growing domestic and regional demand.
One of these projects is the Grand Ethiopian Renaissance Dam (GERD), which is expected to be the largest hydropower plant in Africa with an installed capacity of 5,150 megawatts. The dam, which is 90% complete, has already started generating 375 megawatts of electricity from one of its turbines since February 2022.
Another project is the Koysha Hydro Power dam, which is being built on the Omo River and will be the second-largest in Ethiopia with a capacity of 2,170 megawatts. The EEP said the construction of the dam is progressing well and is expected to be completed by 2025.
Ethiopia’s ambitious energy development plan has attracted international attention and support. The World Bank, the African Development Bank, the European Investment Bank, and the French Development Agency are among the major financiers of Ethiopia’s power sector.
Ethiopia’s energy exports have also contributed to regional peace and stability, as the country has engaged in dialogue and cooperation with its neighbors over the utilization of shared water resources. The GERD, for instance, has been a subject of tripartite negotiations between Ethiopia, Egypt, and Sudan for years, and the three countries have recently agreed to resume talks under the auspices of the African Union.
Ethiopia’s energy exports are expected to increase in the coming years, as the country aims to reach a power generation capacity of 17,000 megawatts by 2030. The EEP said it hopes to earn $400 million annually from energy exports by then.
Ethiopia’s success in harnessing its renewable energy potential and exporting it to the region is a remarkable achievement that showcases the country’s commitment to sustainable development and regional integration.
Source: China View
