Ethiopia officially commissioned the Grand Ethiopian Renaissance Dam (GERD), a $5 billion project on the Blue Nile, now Africa’s largest hydroelectric facility with a full capacity of 5,150 MW, ranking among the world’s top 20 dams.
The milestone marks a significant step in Ethiopia’s quest to electrify its 120 million-strong population and drive economic growth.
Speaking at the inauguration in Guba, Prime Minister Abiy Ahmed hailed the GERD as a transformative project for prosperity and regional electrification, emphasizing it poses no harm to downstream neighbors Egypt and Sudan.
The dam’s reservoir, larger than Greater London, is designed to stabilize irrigation water flow and mitigate floods and droughts.
Egypt, heavily reliant on the Nile for 90% of its fresh water, has expressed concerns about potential water supply risks, particularly during droughts, and seeks legally binding agreements on the dam’s operations.
Sudan shares similar concerns but could benefit from improved flood control and access to affordable electricity. Independent studies indicate no major disruptions to downstream water flow so far, attributed to careful reservoir management and favorable rainfall.
Funded primarily (91%) by Ethiopia’s central bank, with additional support from bonds and citizen contributions, the GERD has become a unifying symbol of national pride.
Local farmer Sultan Abdulahi Hassan, living near the dam, noted tangible benefits: “We now have refrigerators, drink cold water, and use electricity for everything.”
While urban areas see improved electrification, rural regions still face challenges due to limited transmission infrastructure.
The government aims to leverage the dam’s surplus energy to bridge this gap and boost industries, including the emerging bitcoin mining sector, positioning Ethiopia as a regional energy hub.
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