The INDC is intrinsically linked to the country's 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 Ethiopia's 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, 2015a). Additional private investment is primarily needed to meet the non-hydro 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.