Ethiopia is significantly increasing its investment in power infrastructure, with a budget of 313.8 billion Birr (approximately US$1.9 billion) for the fiscal year 2026-27. A notable 70.3% of this budget is allocated for capital expenditures, indicating a strong focus on expanding power generation and improving transmission systems. Ethiopian Electric Power (EEP) aims to achieve 9,770 megawatts (MW) of installed capacity and produce 32,134 gigawatt-hours of electricity.
Currently, more than 100 power projects in Ethiopia are valued at US$48.7 billion. The investment aligns with efforts to enhance electricity coverage from around 54% to a targeted 75% by 2030. Over the past seven years, EEP has doubled its generation capacity to about 9,752 MW and increased national electricity access from 44% to 54%. The World Bank-supported National Energy Compact also emphasizes the 75% access target, prioritizing grid expansion and clean energy.
Transmission infrastructure is key to Ethiopia’s power sector growth, with EEP identifying 56 transmission projects for 2026-27—27 currently under construction, 22 planned for completion, and 7 in the tendering phase.
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