Ethiopia is a low-income country, with low electricity access (45%) and an inefficient power transmission network. The government aims to achieve universal access and become an electricity exporter in the region by 2025. This study provides an invaluable perspective on different aspects of Ethiopia’s energy transition, focusing on achieving universal access and covering the country’s electricity needs during 2015–2065. We co-developed and investigated three scenarios to examine the policy and technology levels available to the government to meet their national priorities. To conduct this analysis, we soft-linked OnSSET, a modelling tool used for geospatial analysis, with OSeMOSYS, a cost-optimization modelling tool used for medium to long-run energy planning. Our results show that the country needs to diversify its power generation system to achieve universal access and cover its future electricity needs by increasing its overall carbon dioxide emissions and fully exploit hydropower. With the aim of achieving universal access by 2025, the newly electrified population is supplied primarily by the grid (65%), followed by stand-alone (32%) technologies. Similarly, until 2065, most of the electrified people by 2025 will continue to be grid-connected (99%). The country’s exports will increase to 17 TWh by 2065, up from 832 GWh in 2015, leading to a cumulative rise in electricity export revenues of 184 billion USD.

The Ethiopia energy mix is dominated by hydro-generation, which is largely reliant on water resources and their availability. This article aims to examine the impacts of severe drought on electric power generation by developing a Drought Scenario. OSeMOSYS (an open source energy modelling tool) was used to perform the analyses. The results were then compared with an existing reference scenario called “New Policy Scenario”. The study looked at how power generation and CO₂ emissions would be altered in the future if reservoir capacity was halved due to drought. Taking this into account, the renewable energy share decreased from its 90% in 2050 to 81% in 2065, which had been 98% to 89% in the case of New Policy Scenario. In another case, CO₂ emissions also increased from 0.42 Mt CO₂ in 2015 to 7.3 Mt CO₂ in 2065, a 3.3 Mt CO₂ increase as compared to the New Scenario. The results showed how a prolonged period of drought would reduce the river flows and lead to an energy transition that may necessitate the installation of other concurrent alternative power plants. The study suggested ways to approach energy mix, particularly for countries with hydro-dominated power generation and those experiencing drought.