Addis ababa: Ethiopia is well positioned to become Africa's future energy hub by harnessing its vast renewable energy resources, extensive hydropower expertise, and expanding regional electricity interconnections, Minister of Water and Energy Habtamu Itefa said. In an exclusive interview with ENA, the minister said Ethiopia has an estimated 60 gigawatts of hydropower generation potential, only a fraction of which has been developed, leaving significant room for future expansion.
According to Ethiopian News Agency, the country's favorable topography and abundant water resources provide a strong comparative advantage over many neighboring countries, several of which have limited hydropower potential and continue to depend on diesel-generated electricity. "Ethiopia is fortunate to possess the natural resources and geographical conditions needed to generate large-scale renewable energy," he said. "These advantages place the country in a strategic position to supply clean energy across the region."
The minister noted that Ethiopia has emerged as one of Africa's leading producers of renewable electricity, with hydropower accounting for the vast majority of its power generation. He added that Ethiopia currently exports electricity to Djibouti, Sudan and Kenya, while working to expand power interconnections with additional neighboring countries.
Habtamu said the country's decades of experience in developing and operating major hydropower projects, including Melka Wakena, Koka, Tekeze, Fincha and the Grand Ethiopian Renaissance Dam (GERD), have enabled it to build strong technical and institutional expertise that distinguishes it within the region. He stressed that hydropower remains one of the cleanest and most cost-effective sources of electricity, producing energy without carbon emissions while supporting Ethiopia's climate and sustainable development objectives.
Beyond hydropower, Ethiopia also possesses substantial solar, wind and geothermal resources, the minister said. "By combining these resources, Ethiopia can become not only the energy hub of East Africa but ultimately the energy hub of the African continent," he stated.
Habtamu observed that rising electricity demand across neighboring countries further strengthens Ethiopia's strategic position, noting that regional nations can significantly improve access to reliable and clean energy through cross-border electricity interconnections. He also said demand for Ethiopian electricity continues to grow alongside rapidly increasing domestic consumption, driven by industrial expansion, urbanization and the country's transition to electric mobility.
"The assignment before us is clear. We must continue building more dams and generating more electricity," the minister said. "Our responsibility is first to meet Ethiopia's growing energy needs and then to supply our neighbors." The minister further noted that recent geopolitical developments have underscored the strategic importance of water and energy resources, with competition over these assets increasingly shaping global affairs.
He said Ethiopia is strengthening its energy security by accelerating the transition from fossil fuels to renewable electricity, including expanding the use of electric vehicles to reduce dependence on imported petroleum products. According to Habtamu, scaling up electric mobility requires sustained investment in electricity generation, transmission infrastructure and nationwide charging networks.
To support this transition, Ethiopia has revised its National Energy Policy to encourage greater private sector participation in the energy sector, he said. The revised policy, recently approved by the Council of Ministers and endorsed by Parliament, provides a more favorable framework for private investment in power generation, transmission and renewable energy development.
Habtamu said increased private sector participation will help meet rising domestic electricity demand, strengthen resilience against global energy market shocks and expand electricity exports to neighboring countries, further reinforcing Ethiopia's role as a regional supplier of clean energy. As part of the Homegrown Economic Reform Agenda, Ethiopia has introduced wide-ranging policy reforms to liberalize the energy sector and attract private investment. The reforms could accelerate renewable energy development, expand electricity infrastructure, advance the transition to electric mobility, meet growing domestic demand, deepen regional energy integration and support Africa's broader transition to clean energy.