the indc is intrinsically linked to the countrys ambitious renewable energy strategy that envisages a massive expansion of its hydropower sources as well as an increase in the share of geothermal wind and solar in the national energy matrix the adaptation section of ethiopias indc highlights the importance to a diversify the energy mix and b develop a strong and climate resilient hydropower sector in order to respond to the challenges related to renewable energy in a context of increasing water scarcity goe a additional private investment is primarily needed to meet the nonhydro renewable energy targets and to spur relevant innovation for hydroelectric adaptation currently a number of key barriers inhibits the private sector from developing its full potential these barriers include an insufficient and slowly evolving policy framework for renewables and a lack of detailed roadmaps and strategies on the institutional side as well as prevailing high risk perceptions a lack of capital and a lack of local experts and entrepreneurs on the financial and economic side