To meet the energy needs of the local communities, it is crucial to utilize natural resources sustainably. One of the best and most promising sources of electricity is permanent rivers, which are spread throughout the country. Designing an optimal power system and minimizing installation costs requires a precise evaluation of flow rates and pressure heads. However, many of Ethiopia’s rivers, which are suitable for micro, mini, and small‐scale hydropower plants, have not been sufficiently studied. Therefore, this article aims to evaluate the hydropower potential of the three most promising rivers (i.e., Chemoga, Huluka, and Wabe) located in the western region of the country, based on a 10‐year daily flow rate history. Daily flow data were collected and converted into mean annual flow. The flow duration curve (FDC) was used to quantitatively characterize the variability of flow rates. Furthermore, QGIS was used to analyze the topographic information of the rivers. When the two critical parameters were determined, the respective hydropower potentials were determined. The result of the study shows that under high, moist, and mid‐range flow conditions, the Chemoga River exhibits the highest theoretical hydropower potential, with power capacities of 4729.20, 3495.49, and 2133.08 kW, respectively. Alternatively, under low flow conditions, the Wabe River has the highest hydropower potential, with a theoretical output of 673.35 kW. In all cases, the power output of Huluka is significantly lower than others. In conclusion, the findings of this study will provide a solid basis for the government and relevant stakeholders to formulate plans and policies for the development of hydroelectric generation in rivers.