Ethiopia Renewable Energy Market Size, Share, Trends and Forecast by Type and Region, 2025-2033

Ethiopia Renewable Energy Market Overview:

The Ethiopia renewable energy market size reached USD 960.90 Million in 2024. The market is projected to reach USD 2,256.09 Million by 2033, exhibiting a growth rate (CAGR) of 8.91% during 2025-2033. The renewable energy market growth is propelled by strong government policies, international financial partnerships, and technological innovation. Strategic planning fosters sustainability and investor confidence, global support expands infrastructure and access, while advanced solutions enhance efficiency, resilience, and competitiveness, thereby influencing the Ethiopia renewable energy market share.

Ethiopia Renewable Energy Market Trends:

Government Policies and Strategic Energy Planning

The firm policy dedication of the governing body in Ethiopia to renewable energy advancement acts as a foundation for the nation's energy transition and market growth. National strategies focus on sustainable production, universal accessibility, and emission lowering, illustrating the aim of the governing authority in attaining inclusive and climate-resilient development. Long-term energy strategies prioritize increasing renewable resources to satisfy industrial needs, energize rural areas, and promote fair economic development. Extensive policy initiatives, encompassing regulatory clarity, efficient procurement processes, and the incorporation of clean energy into the national grid, aim to draw in both local and international investment. By integrating renewable energy objectives into national development strategies, Ethiopia aims to achieve energy independence, lessen reliance on imported fuels, and enhance competitiveness in vital sectors. Supporting reforms, such as enhancing institutions and developing technical skills, are advancing governance, accountability, and operational effectiveness. This unified policy framework provides transparency for investors, guarantees uniformity in project execution, and encourages innovation. Together, these efforts strengthen Ethiopia’s role as a regional leader in renewable energy development, establishing a solid basis for lasting sustainability and economic strength.

International Financial Support and Multilateral Development Programs

Global financial support is emerging as a key element of the Ethiopia renewable energy market growth, acting as a catalyst for initiatives to improve infrastructure, boost generation capacity, and broaden electricity access across the country. Multilateral organizations and development partners are working closely with Ethiopia to expedite its transition to clean energy while maintaining environmentally and economically sustainable growth. In 2025 , the World Bank sanctioned a $424 million ASCENT initiative intended to provide electricity to almost 6 million individuals nationwide. The five-year project, overseen by the Ministry of Water and Energy, includes $400 million in IDA financing and a $24 million grant from Denmark, representing significant international collaboration. The initiative emphasizes grid growth, involvement of the private sector, and cost-effective household connections, fostering equitable access and aiding the nation's universal electrification objectives. In addition to infrastructure improvement, these initiatives enhance institutional capability, encourage transparent governance, and synchronize Ethiopia’s regulatory framework with international best practices. International partnerships are strengthening investor trust, enhancing climate resilience, and creating a solid basis for Ethiopia's enduring renewable energy leadership in the region by merging financial assistance with technical knowledge.

Technological Innovation and Green Infrastructure Development

Technological advancements are is a crucial factor impelling the market growth by propelling the development of efficient, compact, and eco-friendly solutions that support the country's green growth initiatives. Collaborations between domestic firms and international tech suppliers are speeding up the implementation of sophisticated clean energy solutions in multiple industries. In 2025 , Ethio Telecom and Huawei launched Africa’s inaugural Solar-on-Tower solution in Addis Ababa, allowing telecom sites to produce solar energy right where it is needed. This advancement results in a 40% decrease in diesel use, significantly lowering emissions and operational costs while aiding the shift to low-carbon, energy-efficient ICT networks. The design successfully addresses space limitations in urban environments, demonstrating how vertical structures can fulfill dual roles, including telecommunications and renewable energy production. By combining technology and sustainability, such efforts showcase Ethiopia’s ability to unite digital innovation with the adoption of clean energy. These developments are bolstering national energy resilience, encouraging local engineering excellence, and enhancing Ethiopia’s role as a progressive player in the regional renewable energy transition.

Ethiopia Renewable Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type.

Type Insights:

• Solar
• Wind
• Hydro
• Bioenergy
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes solar, wind, hydro, bioenergy, and others.

Regional Insights:

• Addis Ababa
• Oromia Region
• Amhara Region
• SNNPR Region
• Tigray Region
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Addis Ababa, Oromia Region, Amhara Region, SNNPR Region, Tigray Region, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Ethiopia Renewable Energy Market News:

• June 2025: Ethiopia launched its first grid-connected solar rooftop project with bi-directional smart meters in Addis Ababa. The 100 kWp system, inaugurated by Minister of Water and Energy Habtamu Itefa, allows households to both use and feed solar power to the grid. It aims to model decentralized clean energy adoption and expand renewable access.
• May 2025: Ethiopia’s Assela 100 MW wind farm began supplying clean energy to the national grid, expected to power over 140,000 households annually. Financed by Denmark and built by Siemens Gamesa, it supports Ethiopia’s renewable energy goals and climate resilience. This project strengthens Ethiopia’s energy diversification and regional power hub ambitions.

Ethiopia Renewable Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the Ethiopia renewable energy market performed so far and how will it perform in the coming years?
• What is the breakup of the Ethiopia renewable energy market on the basis of type?
• What is the breakup of the Ethiopia renewable energy market on the basis of region?
• What are the various stages in the value chain of the Ethiopia renewable energy market?
• What are the key driving factors and challenges in the Ethiopia renewable energy market?
• What is the structure of the Ethiopia renewable energy market and who are the key players?
• What is the degree of competition in the Ethiopia renewable energy market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Ethiopia renewable energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Ethiopia renewable energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Ethiopia renewable energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.