Ethiopia’s 5150GW Grand Ethiopian Renaissance Dam – ‘The greatest achievement in the history of the Black race’

• Ethiopia’s Prime Minister, Abiy Ahmed, has formally launched the Grand Ethiopian Renaissance Dam (GERD), hailing it as “the greatest achievement in the history of the Black race”.

GERD is the biggest hydropower station in Africa and the dam itself has a surface area of 1874 km2. The 5150MW facility with 13 turbines (2x 375 MW and 11x 400 MW), comprises a concrete gravity dam on the Blue Nile River with a storage capacity of 70 billion cubic metres (bcm) of water, one outdoor powerhouse on each bank of the river, three spillways, and a saddle dam.

The GERD project has cause water security concerns in countries downstream including Egypt and Sudan. As a result, Ethiopia did not receive any financial aid from major international lenders to fund the US$ 5 billion project. Instead, funds for the construction were raised with government bonds, public donations and civil servants contributing a portion of their salaries. The mega project united Ethiopians across political, ethnic and economic divides.

The Chinese lead the construction of the dam plus provided loans to fund auxiliary infrastructure like power transmission lines and turbines, The core construction of the dam’s wall was entirely self-funded. This gave the country full control over the project, setting an example for other African countries.

5.15GW capacity Grand Ethiopian Renaissance Dam. Image credit: Office of the Prime Minister

Powering bitcoin mining

Ethiopia has diversified into powering bitcoin mining from hydroelectric power resources through the Grand Renaissance Dam.

The move generates 18% of Ethiopian Electric Power’s (EEP) income amounting to US$1 billion in the past year.

Ethiopia has secured agreements with over 25 mining businesses including several international miners, particularly from Chinese miners following the ban in China.

Export

Ethiopian Electric Power also exports power to Kenya. In the first three years, Kenya will get a maximum firm capacity of 200MW and thereafter a maximum firm capacity of 400 MW for the remainder of the 25-year PPA.

Ethiopia also has power purchase agreements with Sudan and Djibouti, and has signed a memorandum of understanding with Somaliland, Tanzania, South Sudan and other African countries to sell electricity.

Energy trading

Eastern Africa Power Pool (EAPP) member nations will launch a centralised Day Ahead Market (DAM) in 2025. This will allow bitcoin mining operators in EAPP, outside of Ethiopia, to purchase power from Ethiopian Electric Power.

The competitive power market will integrate shared physical infrastructure with mechanisms for trading low-cost energy, including renewable sources. Officials say the initiative will deliver reliable, affordable, and sustainable electricity across the region, boosting economic productivity. Energy is key to economic development, and better access through the regional power market is expected to improve economic productivity in the region. Read more

Author: Bryan Groenendaal