ETHIOPIA
ETHIOPIA
Ethiopia has enormous renewable-energy potential, particularly in hydropower, and its electricity system is largely based on renewable sources. However, access remains a major challenge: only 55.4% of the population had access to electricity in 2023, despite very low per-capita carbon emissions and significant investments in renewable generation (World Bank, n.d.; International Renewable Energy Agency, 2025).
Hydropower is therefore central to Ethiopia’s strategy for economic development and universal electrification. The Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile represents this ambition, strengthening Ethiopia’s ability to generate renewable electricity and increase energy independence. However, the project has also created a major transboundary water dispute with downstream Egypt and Sudan (Institute on Comparative Regional Intergration Studies, 2025).
One of Ethiopia’s principal challenges remains expanding reliable and affordable electricity access, particularly in rural areas. Preliminary World Bank findings for 2025 indicated that around 71 million Ethiopians lacked a sufficient level of electricity service. In response, the ASCENT Ethiopia programme aims to provide clean and reliable electricity to nearly six million additional people and support Ethiopia’s objective of universal electricity access by 2030 (World Bank, 2025).
At the same time, the GERD demonstrates how renewable-energy development can generate international disputes over shared natural resources. Ethiopia considers the dam essential for development and energy independence, while Egypt and Sudan have raised concerns regarding downstream water security and the rules governing the dam’s operation. Disagreements over water releases, drought management and a legally binding framework remain unresolved, making regional cooperation an important dimension of Ethiopia’s progress towards SDG 7 (Institute on Comparative Regional Integration Studies, 2025).
Institute on Comparative Regional Integration Studies. (2025). The Grand Ethiopian Renaissance Dam - A Water Diplomacy Challenge. United Nations University. Retrieved October 20, 2026, from https://unu.edu/publication/grand-ethiopian-renaissance-dam-water-diplomacy-challenge
International Renewable Energy Agency. (2025). Renewable Energy Statistics 2025. https://www.irena.org/Publications/2025/Jul/Renewable-Energy-Statistics-2025
World Bank. (n.d.). Ethiopia: Data Overview. World Development Indicators. Retrieved October 20, 2026, from https://data.worldbank.org/country/ethiopia
World Bank. (2025, July 29). New World Bank Program to Expand Electricity Access to Six Million People Across Ethiopia [Press release]. Retrieved October 20, 2026, from https://www.worldbank.org/en/news/press-release/2025/08/04/new-world-bank-program-to-expand-electricity-access-to-six-million-people-across-ethiopia