The Ethiopian energy sector and its implications for the SDGs and modeling

Abstract

The level and mix of energy supply and consumption have substantial roles in shaping the sustainable development pathway of a country. This is particularly important in developing regions where access to modern energy sources remains limited. This paper gives a narrative overview of the energy sector in Ethiopia. It presents the key historical trends and outstanding issues in the energy sector. It also explores the ways through which energy transition could support achieving the Sustainable Development Goals (SDGs) in the country. The review shows that energy supply and consumption in Ethiopia are dominated by bioenergy (88%) and by households (88%), respectively. Electricity barely accounts for 3% of the total energy supply although its generation has increased by more than four times between 2004/05 and 2018/19. Furthermore, the dominance of bioenergy source and households demand is projected to continue until the middle of the century. This study identifies research gaps, particularly, in terms of linking the energy sector with the rest of the economy and the environment using multi-sectoral economic models. Such advanced modeling is constrained by the lack of centrally coordinated energy data source among others. Creating an open platform that facilitates information exchange between energy planning institutions and academic researchers could be a crucial step in this regard.