Project Overview - The Grand Ethiopian Renaissance Dam (GERD) project, Africa's largest hydropower project, is now operational, costing an estimated US$5 billion [1] - The dam is designed to generate just over 15,700 gigawatt hours annually [1] Economic Impact - Ethiopia anticipates significant economic benefits, including industrialization, with the industry sector growing at an annual rate of 10% and energy demand from the industry sector growing by 40% yearly [5][6] - The GERD is projected to generate $1 billion in revenue annually from power exports, a substantial amount compared to the $8 billion generated from total commodity exports in the past fiscal year [7] - Ethiopia currently exports power to Djibouti, Kenya, and Tanzania, with these countries expressing interest in purchasing more power [8] - Bitcoin mining companies, particularly from China, are increasingly choosing Ethiopia as a destination due to the dam's power supply, with 25 operational companies connected to the national grid and 20 more in the pipeline [8][9] - The government plans to use revenue from power exports to improve national electricity coverage, aiming to connect half of the country's 130 million population, especially those in rural areas, to the national grid [10] Geopolitical Considerations - The construction of the GERD has caused diplomatic tensions between Ethiopia and downstream countries, specifically Egypt and Sudan [2][11] - Negotiations between the three countries regarding the operation and water filling of the dam have been unsuccessful, even with mediation efforts from the US and Saudi Arabia [12] - The reservoir has captured approximately 74 billion cubic meters of water, raising concerns in Egypt about reduced water flow [13] - Egypt is considering appealing to the UN Security Council for action, while Ethiopia maintains its commitment to continued negotiations and denies any intention to harm the downstream countries [13][14]