Africa’s largest mega-dam: The $5 billion grand Ethiopian Renaissance Dam

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At a Glance:

• $5 billion GERD is set to be Africa’s largest hydroelectric project, generating 6,450 MW of power.
• 92.5% complete, GERD’s progress boosts Ethiopia’s energy security and regional cooperation.
• Geopolitical tensions with Egypt over Nile water rights continue, with Sudan supporting GERD’s potential.

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The Grand Ethiopian Renaissance Dam (GERD), previously known as the Millennium Dam and often referred to as the Hidase Dam.

It stands as a monumental infrastructure project on the Blue Nile River, is set to redefine Africa’s energy future.

This $5 billion mega-dam, under construction since 2011, will become the continent’s largest hydroelectric power plant. W

ith the potential to generate over 6,450 megawatts (MW) of electricity—placing it among the world’s top 20 largest power plants.

Strategic location and construction progress 

Located in Ethiopia’s Benishangul-Gumuz Region, just 9 miles east of Sudan’s border, GERD spans an impressive 1,800 meters in length, with a reservoir capable of holding 74 billion cubic meters of water.

As of February 2025, the dam is 92.5 percent complete, with civil engineering works at 98 percent and electromechanical components at 78 percent.

In February 2025, the activation of the fifth turbine (Unit 6), generating over 401 MW of power, marked a significant step forward, highlighting Ethiopia’s accelerating efforts to harness its hydropower resources.

Economic potential and regional impact 

GERD’s completion promises to alleviate Ethiopia’s acute energy shortages, contributing to industrial growth and providing sustainable power to millions of households.

With a generation capacity of over 6,000 MW, the dam is poised to transform Ethiopia into a major regional electricity exporter, benefiting neighboring nations like Sudan and potentially Egypt.

Ethiopia’s focus on reducing fossil fuel dependency, evidenced by its recent ban on gasoline and diesel vehicle imports, further underscores its commitment to environmental sustainability. 

As Africa’s largest hydroelectric project, GERD could serve as a key driver for regional energy cooperation.

Affordable electricity from the dam has the potential to boost energy security across the Nile Basin, promoting economic integration and supporting development projects throughout East Africa.

Geopolitical tensions and diplomatic negotiations 

Despite its economic promises, GERD has been the center of ongoing geopolitical tensions, particularly with Egypt, which relies on the Nile River for 90 percent of its water supply.

Egypt has voiced concerns over potential reductions in water flow, demanding a halt to construction as a condition for negotiations.

While Ethiopia has maintained that the dam will not significantly impact downstream water flow, Egypt has sought regional support, including through arms shipments to Somalia, further complicating the situation. 

Sudan, the other downstream country, has shown support for GERD, recognizing its potential for enhancing energy security and regional cooperation.

However, the project remains the subject of lengthy negotiations, with a comprehensive agreement yet to be reached.

Looking ahead: A new era of African energy 

As GERD nears full operational capacity, Ethiopia is focusing on resolving outstanding diplomatic issues with Egypt and Sudan.

Aiming to foster regional collaboration and ensure that the dam’s benefits are equitably distributed.

The successful completion of GERD would not only signify a triumph for Ethiopia but also for Africa’s infrastructure ambitions, underscoring the continent’s growing role in the global energy market. 

The Grand Ethiopian Renaissance Dam stands as a testament to Africa’s pursuit of sustainable development, offering the promise of a transformed energy landscape for generations to come.