Monday, 20 May, 2024
Ethiopia is the second most populous nation in Africa after Nigeria, and one of the fastest-growing economies in the region, with an estimated 6.4 percent growth in FY2021/22. [1] In 2023 Ethiopia has reached an estimated GDP scale of 156.1 billion dollars nominal, for PPP the country's economy has reached an estimated 393.85 billion dollars. This mostly comes from services-based economy with agriculture. [2]
The primary source of energy in Ethiopia is biomass, which accounts for 91 percent of energy consumed. Petroleum supplies about 7 percent of total primary energy and electricity accounts for only 2 percent of total energy use. Biomass consumption accounts for over 98 percent of total supply in the residential sector. [3]
Fig 1: Installed capacity trend in Ethiopia ( IRENA 2022 )
According to its three-stage Growth and Transformation Plan, Ethiopia seeks to transform itself into a modern economy and is planning for a carbon-neutral status by 2025.
Fig 2: Electricity Generation trend in Ethiopia ( IRENA 2022 )
[1] Ethiopia Overview: Development news, research, data | World Bank
[2] Economy of Ethiopia - Wikipedia
[3] (PDF) Ethiopian energy status and demand scenarios: Prospects to improve energy efficiency and mitigate GHG emissions (researchgate.net)
In 2021, Ethiopia exported $106 in Hydrogen, making it the 163rd largest exporter of Hydrogen in the world. At the same year, Hydrogen was the 761st most exported product in Ethiopia. The main destination of Hydrogen exports from Ethiopia is Burkina Faso ($106). [4]
In 2021, Ethiopia imported $597k in Hydrogen, becoming the 134th largest importer of Hydrogen in the world. At the same year, Hydrogen was the 616th most imported product in Ethiopia. Ethiopia imports Hydrogen primarily from: United Arab Emirates ($285k), China ($87.8k), Algeria ($66.3k), Qatar ($51.7k), and France ($39k). The fastest growing import markets in Hydrogen for Ethiopia between 2020 and 2021 were Qatar ($51.7k), Netherlands ($29.9k), and France ($23.9k) [5]
Ethiopia’s Climate Resilience and Green Economy Strategy (CRGE) strategy aims to keep greenhouse gas emissions low and build climate resilience, while achieving middle-income status by 2025. Ethiopia is currently reviewing progress and updating the CRGE strategy. The CRGE vision is: For Ethiopia to become a middle-income country by 2025, and to achieve this through economic growth that is resilient to climate change and results in no net greenhouse gas emissions. [6]
With abundant untapped energy resources but electricity access at only 30 percent, the Government of Ethiopia has launched an ambitious plan to bring power to all citizens by 2025, combining on- and off-grid electrification, backed up by state-of-the-art technologies. The World Bank is supporting Ethiopia’s efforts through the $375 million Ethiopia Electrification Program, which focuses on last-mile connections along with strengthening the capacity of the sector and institutional reform. This is one of the largest World Bank electrification programs in Africa. [7]
Ethiopia's Scaling Up Renewable Energy Program (SREP) was designed in consultation and coordination with the Africa Development Bank, the World Bank, other development partners and key Ethiopian stakeholders. The strategy aims to maximize potential of renewable energy. Under this programme Ethiopia is accessing USD 50 million (96 percent grant, 4 percent loan) for a geothermal project (Aluto Langano, 200 MW) and a wind project (Assela, 120 MW), as well as a clean energy small and medium enterprise facility. [8]
A new taskforce pooled from the Ministry of Finance and the Ministry of Water and Energy (MoWE) is finalizing a new policy and strategy document on Green Hydrogen.
Ethiopia’s ability to manufacture and export green hydrogen is facilitated by the country’s agriculturally-led economic strategy, terrain, geographic location, and alternative ports in neighboring nations.
The Ethiopian Ministry of Water and Energy (MoWE) announced that research is underway into numerous renewable energy solutions, including green hydrogen production, to meet the world’s expanding energy needs.
The Ministry of Water and Energy anticipates that Ethiopia will join the African Green Hydrogen Alliance.
Ethiopia is endowed with various renewable energy resources. The estimated potential for hydropower is 45 GW, wind is 10 GW, geothermal is 5 GW, and solar irradiation ranges from 4.5 kWh/m2/day to 7.5 kWh/m2/day. [9]
Ethiopia is one of the countries in sub–Saharan Africa that is endowed with numerous rivers, lakes and ample water resources which, constitutes 20 percent of the total technically feasible potential in Africa. With this potential Ethiopia is usually referred as the powerhouse of Africa. However, the country has utilized less than 10 percent of its potential so far.
Ethiopia one of the countries in east of Africa has abundant solar energy resources. The national annual average irradiance of the country is estimated to be about 5.2 kWh/m2/day. Even though, abundant solar energy resources were available in the country; only about 14 MW solar PV have been used for telecom service, lighting, powering water pump in rural areas and for water heating in major cities. The country also has a high potential for biogas production with its sufficient resources of crop residues and animal manures. [10]