Ethiopia Drives East Africa’s Hydropower Boom as Region Pushes for Clean Energy and Exports

East Africa’s energy landscape is undergoing major change, with hydropower playing a central role in the region’s clean energy plans.

Ethiopia is leading this shift by harnessing its vast water resources to strengthen energy security, drive economic growth, and improve climate resilience.

This mirrors global patterns outlined in the 2025 World Hydropower Outlook.

As Capital News reports, Ethiopia’s Grand Ethiopian Renaissance Dam (GERD) stands at the core of its strategy, now recognized as Africa’s largest hydropower project.

By April 2025, GERD had reached 98.66% completion, with six turbines running and full capacity expected by year-end.

The dam currently generates 2,150 MW of electricity and will provide 5,150 MW once fully operational.

In its first ten months, GERD produced more than 2,700 GWh of electricity, 26% above forecasts, showing the project’s efficiency and the country’s strong water management.

Beyond meeting local energy needs, GERD is set to boost regional electricity exports to countries including Kenya, Uganda, and Sudan, solidifying Ethiopia’s position as a key energy supplier in East Africa. Ethiopia’s hydropower expansion goes beyond GERD.

Other major projects include Genale Dawa 5 (100 MW), with construction starting soon and commercial operations due in 2028, and Halelle Werabesa II (326 MW) in the Guraghe region, now in pre-construction.

These developments fit with Ethiopia’s goal of becoming a leading electricity exporter by 2030 while supporting industrial growth and regional integration.

Don’t Miss This: Octopus Unveils $60M Fund to Boost Africa’s Clean Energy Push

This progress reflects a broader global trend. The 2025 World Hydropower Outlook shows hydropower remains the top source of renewable electricity, supplying 14.3% of global power.

In 2024, global hydropower production rose 10% to 4,578 TWh, and capacity reached 1,443 GW.

The sector is also seeing fast growth in pumped storage hydropower, key for grid stability and balancing variable renewable energy.

Globally, over 475 GW of conventional hydropower and 600 GW of pumped storage projects are in the pipeline.

But challenges such as climate change, water shortages, and aging infrastructure remain. Ethiopia’s example is echoed across East Africa.

Tanzania’s Julius Nyerere Hydropower Plant, now fully operational, adds 2,115 MW to its national grid, making it the largest in East Africa and second largest in Africa.

Kenya and Uganda are also investing in new hydropower plants to meet growing demand and diversify energy sources.

Yet, climate change poses risks, with droughts and water variability affecting generation.

The World Hydropower Outlook warns that competition for water is rising, making efficient management and resilient infrastructure critical. Ethiopia’s approach offers valuable lessons for its neighbors.

By cutting reliance on fossil fuels, Ethiopia’s hydropower projects are helping fight climate change, spur economic growth, and promote regional cooperation.

Plans for a connected East African power grid aim to improve energy security and drive shared prosperity.

Globally, hydropower’s flexibility and storage benefits are increasingly shaping policy and investment decisions.

Don’t Miss This: Ethiopia Opens Doors to Foreign Banks, Marking Historic Shift in Financial System

Image Credit: Meta

Join Crest Africa to explore the stories of Africa’s trailblazers, innovators, and leaders.

We don’t spam! Read our privacy policy for more info.

Unlock Doors Across Africa: Grab Your FREE Personal Branding & Networking Guide!

Ready to build a powerful personal brand and network that opens doors across Africa? This guide provides the blueprint for thriving in the continent’s dynamic business landscape.

Latest Posts

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!