Ethiopia’s Ministry of Water and Energy is preparing an electricity access strategy requiring more than $18 billion in investment to extend reliable power to every corner of the country by 2035, while opening the sector to greater private participation.
The strategy is being developed under the third phase of the National Electrification Programme (NEP), a government framework guiding investment in electricity generation, transmission, and distribution. The new phase is designed to address financing and implementation gaps identified during the first two phases of the programme.
Speaking at a national workshop on the programme’s implementation, State Minister for Energy Development Sultan Woli said reliable and affordable electricity remains central to Ethiopia’s economic growth agenda. He said the third phase will prioritise clean energy expansion, climate resilience, productive use electrification, and digitalisation of the power sector.
The government is simultaneously reviewing Ethiopia’s energy policy to encourage greater private sector participation in electricity generation and related infrastructure — a signal that Addis Ababa is looking beyond public financing to close the sector’s investment gap.
Ashbir Balcha, Chief Executive of Ethiopian Electric Power, the state-owned generation and transmission utility, said construction of new power plants, transmission lines, and substations would continue under the programme. Getu Geremew, Chief Executive of Ethiopian Electric Utility, the distribution arm, said the government aims to achieve nationwide electricity access by 2035.
Mesfin Dabi, head of Electrification and Energy Information at the ministry, said the strategy has been under preparation for more than a year and will provide the long-term framework for Ethiopia’s national electrification agenda.
Ethiopia holds some of Africa’s largest renewable energy resources. Its generation mix is dominated by hydropower, with growing investments in wind, solar, and geothermal projects. Despite recent capacity expansions, electricity access remains uneven — particularly in rural areas — prompting the government to pursue both grid extension and off-grid solutions under the NEP.
The strategy also carries a regional dimension. Ethiopia already exports electricity to Djibouti, Sudan, and Kenya through the Eastern Africa Power Pool (EAPP), a regional body that co-ordinates cross-border power trade among member states. Additional cross-border transmission projects are expected to deepen regional energy integration and generate foreign exchange earnings for Ethiopia.
For international investors and development financiers, the combination of a structured national programme, a policy review favouring private entry, and Ethiopia’s renewable resource base positions the country as one of the continent’s more significant energy investment opportunities over the next decade.
