Ethiopia is making progress in the energy sector. Access to electricity increased from 29% in 2015 to about 55.4% of the population in 2023 (94.7% urban access vs 43.6%), with per-capita electricity consumption of 97 kWh, significantly lower than the average for Africa at 500 kWh. Ethiopia aims to become a regional power supply hub and is investing to expand its power export capability through regional power system integration, in line with the East Africa Power Pool (EAPP) plans. Ethiopia’s installed energy capacity was 5,669 MW in 2023 and despite the large potential, it has the second largest energy access deficit in sub-Saharan Africa (after Nigeria), and the third largest in the world. 

Key challenges include transmission and distribution gaps and a hydro-dominated energy mix that is impacted by droughts. Demand for electricity is projected to grow at 13.7% p.a. to reach 62,000 GWh in 2030, from 13,800 GWh in 2021. To meet this growing demand, Ethiopia plans to increase generation capacity to 17.1 GW by 2030. Projects to generate about 10 GW are ongoing, including the 5.15 GW Grand Ethiopian Renaissance Dam. All planned future electricity generation will be from renewable sources, in line with the Government’s clean energy strategy.

Source: Ethiopia Country Strategy Paper 2023-2027, and AEP data

• ministry of water, irrigation and electricity ethiopia website
• Ethiopian Power Energy Authority
• Ethiopian Electric Utility
• Ethiopian Electric Power
• Ethiopian Rural Energy Development and Promotion Centre (EREDPC)

No on-grid IPPs operating in Ethiopia

• National Electrification Strategy
• Energy Proclamation No. 810/2013 (as amended by Proclamation No. 1058/2018) (Energy Proclamation).
• Energy Regulation No. 447/2019 (Energy Regulation Geothermal Resources Development Proclamation No. 981/2016 (as amended by Proclamation No. 1204/2020) (Geothermal Proclamation)
• Geothermal Resource Development of Council of Ministers Regulations No. 453/2019 (Geothermal Regulation)
• EEA Establishment Proclamation No. 308/2013
• EEA Directive No. 007/2020
• Investment Proclamation 1180/2020.
• Investment Regulation No. 474/2020 (Investment Regulation)