A substantial potential for renewable energies

Ethiopia has a tremendous potential for renewable energy generation.

The country can generate over 60,000 megawatts (MW) of electric power from hydroelectric, wind, solar and geothermal sources.

The main project under development is the Grand Ethiopian Renaissance Dam. It will be the largest hydroelectric power dam in Africa and will generate additional 6,450 MW of electricity.

By 2020, the Government of Ethiopia plans to build additional plants with a power generation capacity of 6,800 MW.

Generating capacities

A net exporter of electricity

By 2020, the Government of Ethiopia plans to increase power generation to 17,000 MW. Thanks to improvements in interconnection capacities, a non-negligible fraction of the additional electricity generated will be exported to neighbouring countries (Djibouti, Kenya, Sudan etc.).

Opportunities to export in other regions exist. For instance, a deal was recently signed with Gulf Countries to export electric power.

Income tax incentives

Firms investing in the following activities are eligible to tax incentives.