Ethiopia’s bold push toward energy self-sufficiency and regional power exportation continues with major progress on the Koysha Hydropower Dam, now 65% complete as of March 2025. Located in South West Ethiopia on the Omo River, the Koysha project is one of the country’s largest and most ambitious energy undertakings to date, with an expected capacity of 1,800 megawatts (MW).
A Game-Changing Project for Ethiopia
Spearheaded by Ethiopian Electric Power (EEP), the $2.7 billion dam includes a 200-square-kilometre artificial lake. Upon completion, it is expected to significantly boost Ethiopia’s electricity generation capacity, meeting the country’s growing energy demand and supporting regional power exports. More than just a power plant, Koysha promises to deliver wide-reaching socio-economic benefits—such as job creation, improved irrigation, fishing opportunities, and increased tourism potential.
Overcoming Financial Hurdles
Despite its massive potential, the Koysha Dam project has not been without challenges. Initially funded with a €340 million loan from a consortium of three banks, the project encountered significant delays due to financing gaps. In August 2024, Ethiopia secured a non-concessional loan to inject over $950 million, ensuring that the final phase of construction could continue without disruption.
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