Ethiopia is one of the few African countries with the potential to produce hydroelectric and geothermal power. As of mid-1991, however, no comprehensive assessment of this potential was available, although some estimates indicated that the total potential could be as much as l43 billion kilowatts. The main sources of this potential were thought to be the Abay (Blue Nile 79.9 billion kilowatts), the Shebele (2l.6 billion kilowatts), and the Omo (l6.l billion kilowatts). The remaining 25.9 billion kilowatts would come from rivers such as the Tekezé , Awash, Baro, Genale, and Mereb.

Ethiopia's first large hydroelectric generating facilities were constructed in the Awash River basin. The three plants- -Awash I (Koka) with 54,000 kilowatts capacity, Awash II with 32,000 kilowatts capacity, and Awash III with 32,000 kilowatts capacity--were finished between l960 and l972. In l974 the Fincha River facility in central Welega opened with a generating capacity of 84,000 kilowatts. Other major power-generating facilities included those at Bahir Dar (7,680 kilowatts) and Aba Samuel (6,560 kilowatts). The total installed capacity of thermal generating units amounted to 210,084 kilowatts in l985/86.

Electric power production in l985/86 totaled 998.7 million kilowatt-hours, 83 percent of which was produced by hydroelectric power installations. Thermal generating units produced the remaining 17 percent. The thermal generating units in the public utility system, many of which were comparatively small, had a generating capacity of 95,635 kilowatts in l985. Major units were located close to Asmera (3l,900 kilowatts), Dire Dawa (4,500 kilowatts), Addis Ababa (3,l00 kilowatts), and Aseb (3,l00 kilowatts). In l985/86 various business enterprises and local communities owned electrical generators of unspecified capacity.

The regional electrical distribution system included an interconnected system and a self-contained system. By 1988 most power generating sources, including all major hydroelectric power plants, were interconnected in a power grid. The interconnected system served more than l00 towns. Power from the Awash, Fincha, and Aba Samuel stations ran the central system, the largest component of the interconnected system. The Bahir Dar interconnected system, which served parts of Gojam and Gonder, and the Eritrean Region Electricity Supply Agency (ERESA) were two of the other major systems. A majority of the self-contained systems got their power from thermal power plants, with the power often being used for domestic purposes and to run small mills.

The Ethiopian Electric Light and Power Authority (ELPA), a government corporation, operated most of the country's power systems. Prior to the revolution, ELPA incorporated more than forty electric power stations and generated about 80 percent of the nation's total electrical output. Two Italian firms, Società Elettrica dell'Africa Orientale and Compagnia Nazionale Impresse Elettriche, chiefly serving Eritrea, produced another l6.5 percent of the country's electrical energy. Independent stations generated the remaining 3 to 4 perd12 ercent. In 1975 the government nationalized all private utility companies and placed them under ELPA. Since then, utility services have been reserved exclusively to the state. In l987 ELPA served about l70 towns and produced about 92 percent of the national electrical output. Mass organizations, sugar factories, and the Aseb refinery administered the remaining 8 percent.

In 1985/86, of the total 847.7 million kilowatt-hours of power sold by ELPA, 59 percent was for industrial use, 29 percent for domestic use, l0 percent for commercial use, and the remaining 2 percent for other uses such as street lighting and agriculture. By 1987 about 9 percent of the total population (4.3 million people) were using electricity.

Ethiopia's second commercial energy resource is oil. Despite reports of natural gas reserves and traces of petroleum, Ethiopia still depends on imported crude oil, which accounted for an average of about l2 percent of the value of imports during the period l982/83 to l987/88. Exploration for petroleum and natural gas in the Ogaden and the Red Sea basin has been going on for many years. In May l988, International Petroleum, a subsidiary of Canada's International Petroleum Corporation (IPC), signed a production sharing and exploration license for the Denakil block, which covers 34,000 square kilometers on and off shore along the Red Sea coast. The IPC also has conducted geothermal studies and undertaken mapping projects. In late 1990, the government announced that geologists had discovered oil in western Ilubabor, with an expected deposit ranging from 100 million to 120 million tons.

Since the early 1970s, there has been exploration and development of geothermal resources in the Great Rift Valley. In early 1972, the United Nations Development Programme (UNDP) conducted preliminary explorations in the area and detected what appeared to be one of the world's largest potential sources of geothermal power. In mid-1979 the EEC, assisted by the UNDP, provided a grant to aid exploration in the valley's lake region. In l984 Ethiopia reported the discovery of a promising geothermal source in the Lake Langano area. However, no indication has been provided as to when production will start. The primary energy sources for most Ethiopians are charcoal, animal manure, and firewood. Some estimates indicate that as much as 96 percent of the country's total energy consumption is based on these traditional sources.

Data as of 1991