Ethiopia is one of the fastest-growing economies in the world despite immense challenges towards access to sustainable energy supplies and modern energy technologies. The country is undertaking great effort towards the development of renewable energy technologies and green legacy. However, the largest share of energy consumption (≈87%) in Ethiopia is dominated by traditional fuels (charcoal, fuel wood, dung cakes, and agricultural residues) which pose various health and environmental risks. The country has an enormous amount of renewable energy potentials (e.g., solar, hydro, wind and geothermal), but only 5% of its full hydropower potential is exploited and others are not fully harvested or not well developed to date. This review paper provides a comprehensive assessment on renewable energy availability, potential, opportunity, and challenges in Ethiopia. We believe the information provided in this review will enlighten the current and future prospects of renewable energy deployment in Ethiopia.