One of Africa’s greenest countries powers ahead with £3.2bn mega-dam

Grand Ethiopian Renaissance Dam (Image: Getty)

Ethiopia, one of Africa’s greenest nations, has taken a bold leap in renewable energy development by constructing the Grand Ethiopian Renaissance Dam (GERD) - a monumental £3.2 billion hydroelectric project that promises to reshape the energy landscape of the continent. Yet, behind its towering walls lies a decade-long diplomatic standoff with neighbours Egypt and Sudan.

Located on the Blue Nile, GERD marks Ethiopia’s ambitious push to become Africa’s largest power exporter. With a projected generation capacity of 6,500 megawatts, it’s set to be the continent’s biggest hydroelectric power plant and the seventh-largest dam in the world once completed. This megastructure, standing at 145 metres, holds a reservoir capacity of 74 billion cubic metres, a staggering volume that underscores both its potential and the controversy surrounding it.

The Blue Nile Falls (Image: Getty)

On a historic morning, Prime Minister Abiy Ahmed celebrated the launch of electricity generation from the dam, with one of the 13 massive turbines officially brought online. For Ethiopia, this milestone symbolises more than energy independence - it represents development, self-reliance, and a strategic pivot toward green energy to support its 110 million-strong population.

However, GERD’s impact has reverberated far beyond Ethiopia’s borders. Egypt, which relies on the Nile for over 90% of its freshwater, fears a rapid filling of the dam could drastically reduce its annual share of 55.5 billion cubic metres, as guaranteed by a 1959 colonial-era agreement. Sudan, while hopeful that the dam could help regulate floods, has raised concerns that its own infrastructure could be compromised without a binding agreement.

The core of the dispute lies in how quickly the reservoir should be filled, and how water would be released during extended droughts. While Ethiopia initially proposed filling the reservoir within two to three years, it has since offered a compromise timeline of four to seven years. Still, Egypt and Sudan remain unconvinced, calling for external mediation from global powers including the U.S. and EU - a suggestion Ethiopia rejects, maintaining faith in the African Union's leadership.

Ethiopian Countryside Landscape with Canyon and Bridges in the Amhara Region (Image: Getty)

Ethiopia insists that GERD takes regional interests into account, dismissing Egypt’s demands for guaranteed water flows as unrealistic and reminiscent of colonial entitlement. The dam, Addis Ababa asserts, is not just about power - it’s about progress, green innovation, and reshaping Africa’s development on African terms.

As the turbines spin and the debate continues, GERD stands as both a beacon of renewable hope and a stark reminder of the complex geopolitics that flow along the Nile. For Ethiopia, this green giant may well be the key to unlocking an era of energy-driven prosperity.