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With Its Giant Dam Online, Ethiopia's Power Grid Grows, but Access Still Lags

With Its Giant Dam Online, Ethiopia's Power Grid Grows, but Access Still Lags
Monday, 06 October 2025 16:10
  • Ethiopia’s GERD boosts power output past 5,000 MW capacity
  • Only 44% of population has electricity amid grid shortfalls
  • Govt targets 75% electrification, expanded grid, cleaner energy by 2030

The recently commissioned Grand Ethiopian Renaissance Dam (GERD), with an estimated capacity of more than 5,000 MW, symbolizes Ethiopia's push for energy self-sufficiency. The dam, one of Africa's most powerful, has boosted national production capacity and positioned Addis Ababa as an African leader in renewable energy. However, the path to universal electricity access for the continent's second-most populous country remains challenging.

Only 44% of Ethiopians currently benefit from basic electric service, largely due to inadequacies in the national grid, according to the National Energy Compact published as part of the World Bank's Mission 300 initiative.

The current grid includes 20,390 km of transmission lines and 179,000 km of distribution lines, a level still insufficient to cover the entire territory. System losses further complicate service reliability and constrain access rates, with transmission losses at 6%, distribution losses at 22%, and commercial losses at 10%.

The government plans significant work to modernize the electrical system. Transmission networks are projected to expand to 30,000 km by 2030, and distribution networks to 456,000 km. The official targets are to reduce transmission losses to 5.5%, distribution losses to 13%, and commercial losses to 4.5%.

Installed capacity, currently 9,761 MW, must reach 14,000 MW by the same deadline, with the share of non-hydro renewable energy sources increasing from 5.6% to 15%.

By 2030, Ethiopian authorities aim for 75% electrification, connecting more than nine million additional households. This goal relies on a mixed approach: 70% network extension and 30% off-grid solutions, including mini-grids and solar home systems for rural areas.

While the GERD represents a major milestone, the core work lies ahead. Addis Ababa must now focus its efforts on expanding and modernizing the grid, diversifying its energy mix, and managing rising demand driven by urbanization and industrialization.

Abdoullah Diop

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