In this paper, an hourly dispatch model was developed to analyze the system balancing and wind power curtailment challenges in the future of the Ethiopian electric power grid system. The developed model was validated using historical data and was used for the analysis of the grid system in 2030 with different scenarios. The model was used to examine the impacts of transmission capacity, regulation reserve requirement, and daily minimum generation of hydropower for irrigation with three cases of wind annual energy share of 14.5%, 17.8%, and 25.2%. Thus, the curtailment was found to be below 0.2%, 1.1%, and 9.8% for each case, respectively. The cost of wind energy increases in proportion to the percentage of curtailment and the increase in transmission line capacity. Reducing the minimum hydropower generation results in smaller wind power curtailment and better generation-consumption balancing.