Ethiopian-German Energy Cooperation

Context

Ethiopia’s economy has seen strong growth in recent decades. Moreover, the country generates almost 100 per cent of its electricity from renewable sources, primarily hydropower, and has a power surplus, which it is already using for electricity trading with neighbouring countries.

Yet internal conflicts within the country and insufficient foreign currency have been holding back international investors. In addition, the electricity transmission grids are unreliable.

Expanding electromobility and hydrogen supply chains, particularly green ammonia, and universal access to electricity by 2030 are on the Ethiopian Government’s agenda.

Objective

Experience from Germany’s energy transition is helping to develop a reliable, fit for the future energy system in Ethiopia while taking account of energy efficiency.

Approach

The project operates in the following areas:

Power grid and digitalisation: The project supports Ethiopia’s energy sector in introducing and acquiring knowledge on digital solutions such as artificial intelligence. This is designed to enable the energy sector to organise the power grid more effectively and above all to identify and prevent system overloads and power outages in the distribution grid.

Energy efficiency: The project cooperates with Ethiopia’s Petroleum and Energy Authority to establish standards for energy efficiency in buildings in the country’s construction law. In addition, it promotes measures to label, check and increase the number of energy-efficiency devices and energy management practices.

Hydrogen: The project supports the dialogue between technical staff in energy institutions and decision-makers, thus raising awareness about green hydrogen and derivative fuels such as green ammonia. At the same time, it is developing a roadmap for Ethiopia’s hydrogen industry.

Last update: September 2024