Hydropower accounts for the bulk of Ethiopia's electric power generating capacity and output. In 2002, the country's generating capacity stood at 501 MW, with hydropower accounting for 451 MW, and conventional thermal at 50 MW. Electricity production for that same year was 2.024 TWh, of which 2.003 TWh and 20 GWh came from hydroelectric and conventional thermal plants, respectively. Electric power consumption in 2002 totaled 1.882 TWh. In 2008 electricity production was 3.715 TWh. The expected completion of the Gilgel Gibe III Dam will add 1870 MW capacity to the country's power production, more than doubling the country's production. However, Ethiopia's heavy reliance upon hydropower to supply its electric power has made the country vulnerable due to lengthy droughts.
Ethiopia has small reserves of oil and natural gas. As of January 2003, the country's crude oil and natural gas reserves were placed at 428,000 barrels (68,000 m3) and 880 billion cubic feet (2.5×1010 m3), respectively. Ethiopia has no crude oil refining capacity and must import all refined petroleum products. Imports of refined petroleum products totaled 24,910 barrels per day (3,960 m3/d), with consumption was an estimated 23,000 barrels per day (3,700 m3/d) in 2001. In 1997, due to high maintenance and operating costs, Eritrea and Ethiopia agreed to shut down their joint operations at the petroleum refinery at Assab and import refined petroleum products. In 2001, Ethiopia signed an agreement to import petroleum products from Sudan, which began in January 2003. Although Ethiopia has few proven hydrocarbon reserves, it is estimated to have considerable potential for oil and gas exploration.