✅ We often hear many people debating why Ethiopia sells power to neighboring countries without first meeting local demand. Does it make sense? Literally yes but not in technical and economic terms.
Ethiopia must sell power and here is why.

✅ Under the current technology, power cannot be stored or transferred. Whatever is produced (supply) shall at the same time be consumed. That means, even if you have the generating capacity, you cannot generate beyond the demand.

           Clear?

✅ Supply comes from power plans but where does demand come from to balance generation, then?

✅  Well, it comes from the consumers (residential, commercial and industry etc.). So, why does demand grow with supply? Physical (infrastructure) constraint. Ethiopians (>80% of the population) live in a highly dispersed geography. Although all of Ethiopians want to have grid-based access to electricity (demand), there is no INFRASTRUCURE (transmission, Substation, distribution) to carry the power supply wherever needed. While it is partly due to low investment in power distribution, there is also technical constraint. You cannot extend distribution lines more than an average of 100kms. That means, if the government invests more in the distribution sector, there will be a large segment of Ethiopian population who will still be out of the reach of the GRID, unless there comes innovation that changes the current technology.

✅ So, why does the government invest and close the gap, which is reachable the least? Lack of MONEY, and that is why power must be exported. Most of the material and equipment for the power infrastructure is imported with foreign currency and generating foreign currency provides the utilities the leverage to obtain foreign currency not just for further investment in the sector but also effectively maintain the current infrastructure.
  
✅ The other important part of selling power is to build the capability of subsidizing the ever off-grid sector. The money generated from export will be used to finance power, (grid and off grid) any way. In other countries that have matured grid infrastructure, it is common for the grid to subsidize off-grid electrifications. In Ethiopia, the grid itself needs help. Debt should also be serviced in foreign currency.

✅ So, do you get it now. If not, what you in fact are saying: Keep the capacity even if it means losing the water through flowing or evaporation. In fact, the utility sells power after meeting the current local demand given the current available infrastructure that can accommodate the local demand. The utility is not shutting down local industries to export power. It is exporting the left over even if you are not seeing it.  

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