[2] Ethiopia's renewable energy portfolio is diverse, encompassing wind, solar, and geothermal power in addition to its substantial hydroelectric capacity.
[6] Drought frequency, flooding, poor land management techniques, and a rapidly growing population all have increased the situations direness.
This project is not solely focused on energy generation; it is also regarded as a potential contributor to industrialization and economic growth, with possibilities for electricity exports.
[citation needed] The Chinese firm Hydrochina estimated total wind power potential to be as high as 1.3 million MW.
As part of Ethiopia’s strategic expansion of its energy sector, the country is also developing geothermal projects in Oromia, specifically in Corbetti and Tulu Moye.
Representing an investment of approximately $1.2 billion, the geothermal projects demonstrate Ethiopia's commitment to renewable energy development.
[2] A study funded by the Climate and Development Knowledge Network found that the Ethiopian approach to geothermal development puts little focus on involving the private sector in risk mitigation and fails to build the capacity needed for flows of significant private sector finance.
The study found that international, multilateral and bilateral institutions should: Over 91% of the primary energy supply in Ethiopia is coming from biomass as of 2015 (45.8 out of 49.9 MTOE).
[16] Often coming in the form of animal product and forestry, natural resources, biomass as a renewable energy source is utilized extensively by direct residences and the final sector.
The country's developed a strategy it calls the Woody Biomass Inventory and Strategic Planning Project to attempt to combat the noticeable degradation of vegetation cover and address resource shortages for future industrial and energy needs.
[18] Such a reliance on biomass backed fuels has been linked to the over 72,400 indoor air pollution caused deaths that occur annually in Ethiopia.
[19] The government plans to distribute 9 million more efficient stoves by 2015 to reduce wood use while improving air quality and lowering CO2 emissions.