Since 2019
Energy Cooperation Tackles Key Sustainable Energy Transition Issues in Ethiopia
- Green Hydrogen value chain development promises tangible investment prospects in Ethiopia, especially in the electro-sustainable aviation fuels (eSAF) sector.
- Digital solutions for grid management promote energy security and energy efficiency in Ethiopia and create opportunities for investment in the sector and beyond.
- Energy efficiency in the building sector in Ethiopia is vital for energy security and decarbonization of the rapidly growing building sector and it promotes skills and technology transfer from Germany.
Energy security
Decarbonisation
Foreign Trade Promotion
Green Hydrogen
As the aviation sector prepares for ambitious EU decarbonisation goals, Ethiopia’s vast renewable energy potential and growing domestic sustainable aviation fuels (SAF) demand make it a strategically relevant partner for securing future eSAF supply chains — benefiting both the German and Ethiopian aviation industry. The Energy Cooperation delivered in-depth trainings on PtX hydrogen value chains, with a focus on eSAF, while also supporting the establishment of the Ethiopian Hydrogen Association (EHA). A high-level roundtable on eSAF, attended by State Secretary Flasbarth of the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), showcased Ethiopia’s vast renewable energy potential, the existing SAF demand from Ethiopian Airlines, and market opportunities with Germany and the EU. The event also highlighted collaboration with Atmosfair/ Solarbelt’s eMethanol production initiative in Ethiopia. Additionally, a PtX-Hydrogen scoping study was launched in December 2025 to quantify Ethiopia’s hydrogen potential and develop its Hydrogen Roadmap.
AI Solutions for Power Grid Management
The Energy Cooperation collaborates on strengthening the resilience of the Ethiopian power grid by deploying German digital solutions. In December 2025, a joint pilot project was launched by the Karlsruhe Institute for Technology (KIT), the Ethiopian Electric Utility (EEU), and the Energy Cooperation to introduce digital solutions for power grid management. The project aims to enhance blackout prediction and prevention in Ethiopia’s blackout prone distribution grid by deploying modified Smart-e-Meters and AI-powered digital solutions. It also seeks to establish the groundwork for scaling up and locally producing the technology through an Ethio-German joint venture.
Building Energy Efficiency
Ethiopia’s rapidly growing building sector offers a timely entry point for German expertise in energy efficiency standards and sustainable construction. A baseline study and the development of a building energy efficiency code are currently underway in collaboration with the German Energy Agency (dena) and the Ethiopian Petroleum and Energy Authority. It aims to transfer German and international expertise, knowledge, and technology to Ethiopia’s rapidly growing building sector.
More information
1. What has been the most tangible outcome or impact of your partnership activities in 2025?
The establishment of the Ethiopian Hydrogen Association.
2. Which focus areas were particularly relevant for your country in 2025?
PtX – Hydrogen: The SAF agenda is high in the aviation sector development in Ethiopia.
Energy Efficiency (in building): The building sector is currently with high strategic focus in Ethiopia and rapidly growing.
3. What concrete activities are planned for 2026?
- PtX hydrogen scoping study: study to be published in June/ July 2026.
- Energy Efficiency in Building baseline and codes: Study to be published in June 2026.
- Digital solution for grid management: Pilot project to outcomes to be published in November/ December 2026
