Ethiopia

Ethiopia, endowed with abundant renewable energy resources, especially hydropower and geothermal, has significant potential for green hydrogen development. As the global energy landscape shifts towards cleaner alternatives, green hydrogen presents Ethiopia with opportunities to diversify its energy portfolio, enhance energy security, explore export markets, and contribute to global decarbonization efforts.

Ethiopia is committed to achieving net zero emissions by 2050 through its Nationally Determined Contributions (NDCs). One of the measures under consideration is the announcement of a national strategy or roadmap for implementing green hydrogen. [1] This strategy aims to leverage Ethiopia's abundant renewable energy resources, particularly hydropower and geothermal, to support green hydrogen production and contribute to global decarbonization efforts.

Ethiopia is exploring different strategies to boost renewable power development. These include offering incentives for land allocation, providing financial support, and implementing policies that create a favorable environment for renewable energy projects. [1]

The country has reasonable solar irradiance and onshore wind potential. The Global Horizontal Irradiance (GHI) ranges from 4.70 to 5.85 kWh/m², with an average of 5.92 kWh/m². However, the Direct Normal Irradiance (DNI) is relatively low, averaging 4.90 kWh/m², making it less suitable for Concentrated Solar Power (CSP) systems. Ethiopia's average annual wind speed is approximately 5–9 m/s at a hub height of 100 meters, with a potential of around 1,300 GW of onshore wind capacity. The wind power density for onshore installations is moderate at 259.4 W/m². [1] 

Hydropower is the primary source of electricity in Ethiopia, with an installed capacity of almost 4.8 GW, which accounts for 96.7 per cent of the total electricity generation of 17.3 GWh. Wind energy, with an installed capacity of around 0.4 GW, contributes about 3.1 per cent to the electricity mix. Ethiopia also aims to become a significant electricity supplier to neighboring countries such as Djibouti, Sudan, Kenya, and Tanzania. [2] (Refer Figure)

Ethiopia has an exploitable hydropower potential of nearly 45 GW. The Grand Ethiopian Renaissance Dam (GERD), currently under construction, will have a capacity of 5 GW upon completion, with 750 MW already operational since 2023. [3] 

The country's geothermal potential is estimated at around 10 GW, providing a baseload renewable energy source that can be used for low-cost green hydrogen production. 

As of 2025, Ethiopia does not have established facilities for manufacturing electrolysers, which are essential for green hydrogen production.

Recently, Ethiopia granted licenses to Fortescue Future Industries (FFI) to produce green hydrogen for local industries using renewable sources such as geothermal and hydropower. [1]