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Ethiopia has inaugurated the Grand Ethiopian Renaissance Dam, the largest hydropower project in Africa, designed to supply electricity to millions and strengthen regional energy networks. While the dam promises economic growth and energy access, it has escalated tensions with Egypt, which depends on the Nile for 90% of its water and fears shortages and future upstream projects. Sudan seeks agreements but may benefit from the dam. Funded largely by Ethiopia, the project has become a national unifying symbol, even as rural populations remain partially unconnected to the national grid.
Ethiopia has officially launched the Grand Ethiopian Renaissance Dam (GERD), Africa's largest hydroelectric project, aimed at providing energy to millions of people in the country and across the region. The $5 billion project, located on a tributary of the River Nile, is central to Ethiopia's plans for economic development and energy expansion. The dam, which started construction in 2011, currently generates 750 MW from two operational turbines, with the full capacity expected to reach 5,150 MW. Prime Minister Abiy Ahmed has stated that the energy will improve access to electricity for Ethiopians and allow surplus power to be exported regionally. Advertisement
Downstream neighbors, especially Egypt, have expressed serious concerns over the dam's impact on their water supplies. Egypt relies on the Nile for around 90% of its fresh water and fears that the GERD could restrict flows during droughts and set a precedent for further upstream dams. Egypt has consistently opposed the project, citing water treaties from the British colonial period and warning of existential threats to its water security. The Egyptian Foreign Ministry recently emphasized that Cairo will closely monitor developments on the Blue Nile and exercise all measures to safeguard national interests.
Sudan has joined Egypt in calling for legally binding agreements on the dam's operation but may benefit from improved flood management and access to low-cost electricity. During his first term, former U.S. President Donald Trump warned that the situation was dangerous, suggesting that Egypt could take drastic measures, yet no agreement was reached despite years of negotiations.
Ethiopia has maintained that the dam is a sovereign right and is not a threat to downstream countries. In 2020, the government began filling the reservoir in phases, asserting that it would not significantly disrupt Nile flows. Studies over five years indicate that no major interruptions have occurred, aided by favorable rainfall and careful management. The dam has also served as a source of national pride and unity, especially amid internal conflicts in Ethiopia, according to analysts.
The project has been primarily funded by Ethiopia itself, with 91% coming from the central bank and 9% through local bond sales and public contributions, without foreign aid. The dam's reservoir, covering an area larger than Greater London, is expected to provide reliable water for hydropower, irrigation, and flood control. However, rural communities may have to wait to access this energy, as only about half of them are connected to the national grid.
Relations between Ethiopia and Egypt have worsened over the past year, and experts warn that tensions could increase. Ethiopia's strategic ambitions, including gaining access to the sea via Eritrea or Somalia, have drawn Egypt's opposition, highlighting the complex regional dynamics surrounding the Nile.
Source- Reuters
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