Ethiopia earned $475.7 million from electricity exports during the latest Ethiopian fiscal year, representing a 25% increase from the previous year as the country expanded its power generation capacity and strengthened electricity supplies to neighbouring countries.
The figures, reported by Ethiopian Electric Power, show growing importance of electricity exports as a source of foreign currency for Ethiopia. The state owned utility said the increase was driven by expanded electricity supply to regional markets.
Ethiopian Electric Power increased its generation capacity by 23% during the reporting period to 9,730 megawatts. Hydropower accounted for 97% of the country’s electricity generation, highlighting the continued dominance of renewable energy in Ethiopia’s power system.
The utility also recorded its highest revenue since its establishment, generating 124.2 billion birr, while net profit reached 39.5 billion birr. The company said it achieved 101.83% of its annual performance target.
The rise in electricity exports comes as Ethiopia seeks to use its large renewable energy resources to supply its own growing domestic demand while expanding power trade across the Horn of Africa.
Kenya and Djibouti are among Ethiopia’s key electricity markets. Ethiopia has also been developing infrastructure to increase cross border electricity trading and strengthen regional power interconnections. Earlier data showed that Kenya accounted for the largest share of Ethiopia’s electricity exports, while Djibouti remained another important market.
The expansion of export capacity could provide Ethiopia with an additional source of foreign exchange while supporting regional energy security. Reliable access to competitively priced electricity can also help neighbouring countries reduce dependence on more expensive thermal generation and support industrial activity.
Ethiopia’s electricity expansion is largely based on renewable resources. In addition to its extensive hydropower capacity, the country is developing wind and solar projects as it seeks to diversify its generation mix and increase overall supply.
Planned projects include the Genale Dawa 6 hydropower project, the Aisha II wind power project and a 100 megawatt solar project financed through domestic resources. The government expects these investments to increase generation capacity and create additional opportunities for regional electricity exports.
The growth also comes as Ethiopia continues to strengthen electricity connections with neighbouring countries. Regional transmission infrastructure is expected to allow greater movement of power between national grids and support the development of a wider East African electricity market.
For Ethiopia, the increase in electricity exports illustrates how investment in renewable energy infrastructure can generate foreign exchange while supporting regional economic integration. However, sustaining export growth will depend on continued investment in generation and transmission capacity, alongside reliable domestic electricity supply as demand increases.
The latest performance therefore places electricity among Ethiopia’s emerging sources of export earnings and strengthens the country’s ambition to become a major power supplier in the East African region.
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