Ethiopia has launched the National Electrification Program 3.0, a strategic framework designed to expand electricity access, improve reliability, and support economic growth across the country. The Ministry of Water and Energy introduced the program on October 27, 2026, at the third Ethiopian Water and Energy Week in Addis Ababa, bringing together government institutions, power utilities, regulators, development partners, and private-sector leaders to outline the nation's energy priorities.
The updated program marks a shift in approach from simply extending transmission lines and installing meters to ensuring electricity actively supports productive economic activities and public services. Mesfin Dabi, Executive Officer for Electrification and Energy Information at the Ministry of Water and Energy, emphasized this change in strategy. The framework targets agricultural processing, irrigation, grain milling, poultry farming, textile production, and digital infrastructure while prioritizing reliable supply to homes, schools, and health centers. NEP 3.0 also aims to address long-standing inefficiencies within the power distribution network.
The program establishes a new target of universal electricity access by 2035, replacing the previous goal of 2025, which remained unmet despite expansion of generation capacity. The previous strategy aimed for 65 percent grid extensions and 35 percent off-grid solar systems and mini-grids. The updated framework, prepared by the Ministry in June 2026 with World Bank financing, recommends using geographic information systems and population distribution modeling to determine cost-effective connection methods. Data from the World Bank Multi-Tier Framework for 2025 shows that while 65 percent of Ethiopian households had basic energy access, only 44 percent met the minimum Tier 1 threshold for reliable, capacity-sufficient supply.
Rural-urban disparities remain significant. In 2025, urban electricity access stood at 91 percent, compared to 56 percent in rural areas. NEP 3.0 targets approximately 4.4 million off-grid household connections by 2035 and invites private-sector participation in mini-grid operation and maintenance. However, restricted access to commercial credit for small enterprises continues to limit productive use of electricity in rural regions, preventing smallholders from acquiring processing machinery and other equipment.
Ethiopia has made substantial generation gains. Installed capacity expanded from approximately 4,462 megawatts to 9,752 megawatts over the past decade, driven largely by the Grand Ethiopian Renaissance Dam, while the transmission network has grown beyond 20,000 kilometers. Despite these milestones, end-user reliability remains constrained by weak local distribution networks, aging transformers, high technical and commercial losses, and financial bottlenecks. NEP 3.0 mandates synchronized investments across transmission and distribution infrastructure to resolve these systemic operational challenges.