Ethiopia s power grid energy storage policy

What is Ethiopia's energy policy?

Ethiopia's energy policy plays a crucial role in shaping the country’s economy and the well-being of its population. This second Ethiopian Energy Outlook aims to support policy development through fact-based and critical analysis.

Why is Ethiopia not able to power the National Grid?

Conflicts in Su-dan, South Sudan, Yemen, and Somalia are delay-ing Ethiopia’s ability to strengthen energy cooperation with neighbouring countries and ex-port electricity. Power generation to the national grid is already 100% renewable, with hydropower as the domi-nant source.

What is the outlook for energy policy in Ethiopia?

The outlook is meant as a review of the current energy policy. The pur-pose is not to give detailed recommendations – but more to give a solid foundation for a discus-sion of key issues within energy policy. In the cur-rent outlook, also Ethiopian Electric Utility (EEU) and Petroleum & Energy Authority (PEA) are par-ticipating.

Can energy transition support the SDGs in Ethiopia?

Ethiopia is endowed with a variety of renewable energy resources. This enormous potential however remains largely unexploited. Energy poverty, inefficiency, and insecurity are still major challenges. Energy transition could support almost all SDGs in the country.

How important is electricity access to Eco-nomic development in Ethiopia?

Expanding electricity access is fundamental to eco-nomic development. While the current distribution grid covers only 25% of Ethiopia’s land area, 68% of the population resides less than 5 km from the grid. This highlights the potential to triple the number of household connections within the foot-print of the existing grid.

What percentage of Ethiopian households have access to the National Grid?

By 2024, only 22% of Ethiopian households had a legal access to the national grid, with significant dis-parities between urban and rural regions. While Addis Ababa enjoys an electrification rate of nearly 93%, regions such as Afar and Somali remain below 12%. From 2019 to 2024, 2.2 million households were connected to the grid.