Context

Ethiopia’s economy has seen strong growth in recent decades. The country produces almost 100 per cent of its electricity from renewable sources, primarily from hydropower. It is trading the surplus electricity with neighbouring countries already.

However, the energy system still has deficits. Fluctuations in hydropower production, for example due to droughts, make supply unreliable. Up to now, energy efficiency has played a subordinate role. Furthermore, electricity is not yet accessible to the entire population.

The Ethiopian Government would like to change this by 2030 and expand electromobility and hydrogen supply chains, primarily for green ammonia and sustainable aviation fuel.

Objective

Experience from the German energy transition has contributed to ensuring that Ethiopia has a future-proof and reliable energy system that takes energy efficiency into account.

Approach

The project works in three priority areas:

The power grid and digitalisation:

• It supports Ethiopian electricity suppliers in implementing digital solutions with artificial intelligence.
• These solutions support the electricity companies in better managing the power grid and in identifying and preventing overloads and power failures in the distribution grid.

Energy efficiency:

• The project works with the Ethiopian Petroleum and Energy Authority (PEA) so that energy efficiency requirements of buildings are incorporated into Ethiopian construction law.
• In addition, it provides support with labelling and testing energy-efficient end devices and developing economical energy management.

Hydrogen:

• The project supports experts from energy institutions and policy-makers with expert dialogue on green hydrogen and on related energy sources such as green ammonia and sustainable aviation fuel.
• At the same time, it develops a road map for the hydrogen economy in Ethiopia.

Last update: September 2026