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Energy portfolio diversification plays a critical role in reducing vulnerability, not only to supply disruptions and oil price hikes, but also to climate change. Ethiopia is highly vulnerable to extreme weather variability, particularly erratic rainfall (hydrologic forecast included in the National Power Transmission master plan). With climate change, it will likely increase the frequency of both flooding and droughts, posing a significant challenge to hydropower generation. While hydropower generation accounts for almost 95% of the total current energy generated, Ethiopia has committed to diversify its generation sources by scaling wind and solar power energy as mitigation measures against power shortages, especially during the dry season, while investments in geothermal (1000MW under negotiation with a private developer) and biofuels complement the intermittent resources. As of 2015, wind plants (324 MW) account for 13.4% of the installed generation capacity of the country. There is a waste to energy plant under construction that will generate 50MW (other 2 plants of 50MW each are planned to be built in the city). All in all, a steady development of the huge potential of solar, wind, sugar and biomass can help to achieve easily the diversification objectiv

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