Energy in Ethiopia
Encyclopedia
Energy in Ethiopia is an industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 lacking in natural resources, though it has plenty of potential.

Hydropower

Hydropower accounts for the bulk of Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...

's electric power generating capacity and output. In 2002, the country's generating capacity stood at 501 MW, with hydropower accounting for 451 MW, and conventional thermal at 50 MW. Electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...

 production for that same year stood at 2.024 TWh, of which 2.003 TWh and 20 GWh came from hydroelectric and conventional thermal plants, respectively. Electric power consumption in 2002 totaled 1.882 TWh. However, Ethiopia's heavy reliance upon hydropower to supply its electric power has made the country vulnerable to lengthy drought
Drought
A drought is an extended period of months or years when a region notes a deficiency in its water supply. Generally, this occurs when a region receives consistently below average precipitation. It can have a substantial impact on the ecosystem and agriculture of the affected region...

s.

Oil and natural gas

Ethiopia has small reserves of oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....

 and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

. As of January 2003, the country's crude oil and natural gas reserves were placed at 428000 barrels (68,046.6 m³) and 880 Gcuft, respectively. Ethiopia has no crude oil refining capacity and must import all refined petroleum products. Imports of refined petroleum products totaled 24910 oilbbl/d, with consumption was an estimated 23000 oilbbl/d in 2001. In 1997, due to high maintenance and operating costs, Eritrea
Eritrea
Eritrea , officially the State of Eritrea, is a country in the Horn of Africa. Eritrea derives it's name from the Greek word Erethria, meaning 'red land'. The capital is Asmara. It is bordered by Sudan in the west, Ethiopia in the south, and Djibouti in the southeast...

 and Ethiopia agreed to shut down their joint operations at the petroleum refinery at Assab
Assab
Assab is a port city in the Southern Red Sea Region of Eritrea on the west coast of the Red Sea. In 1989, it had a population of 39,600. Assab possesses an oil refinery, which was shut down in 1997 for economic reasons...

 and import refined petroleum products. In 2001, Ethiopia signed an agreement to import petroleum products from Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...

, which began in January 2003. Although Ethiopia has few proven hydrocarbon
Hydrocarbon
In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons from which one hydrogen atom has been removed are functional groups, called hydrocarbyls....

reserves, it is estimated to have considerable potential for oil and gas exploration.
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