Ethiopia and Development Partners Unite to Accelerate Energy Reform

Senior government officials and development partners convened today at the Ministry of Finance for the Development Partners Group (DPG) Heads of Agencies (HoA) Meeting, focused on advancing Ethiopia’s energy sector reform. The high-level dialogue underscored Ethiopia’s commitment to achieving universal electricity access by 2035 and transitioning to a diversified, sustainable, and resilient energy future.

Opening the meeting, H.E. Dr. Eng. Sultan Wali, State Minister of Water and Energy, emphasized the strategic importance of energy for Ethiopia’s development. “Energy security is national security,” he stated. “We are not only powering homes, but also driving industrialization, modern agriculture, and regional integration.”

Ethiopia’s energy reform is anchored in the Home-Grown Economic Reform 2.0 and the National Energy Compact under Mission 300. The country aims to connect 15 million new households by 2030, expand clean cooking access, and mobilize over $9.6 billion in investments from public, private, and development partners.

Presenting progress on the reform, Mr. Andualem Siae Seboka, Deputy CEO of Ethiopian Electric Power (EEP), highlighted key achievements: “Our generation capacity has doubled, and EEP’s revenue has increased fivefold in five years. We are now a 100% green energy country, with 95% of our electricity from hydropower and the rest from wind.”

However, challenges remain. Over 65% of the population still lacks electricity, and 90% rely on biomass for cooking. “We must diversify beyond hydropower and bring in the private sector,” said H.E. Dr. Eng. Sultan Wali. “The government alone cannot meet the demand.”

Development partners echoed strong support. Madalo Minofu, IFC Country Manager, praised Ethiopia’s reform roadmap: “The approval of the new energy policy will be a major milestone. We are ready to support implementation, especially in scaling up IPPs, PPPs, and decentralized solutions.”

The European Union also reaffirmed its commitment. H.E. Sofie From-Emmesberger, EU Ambassador to Ethiopia, noted: “Access to electricity is transformative. Through the Global Gateway, we are investing in grid modernization, rural electrification, and clean cooking-especially for refugees and host communities.”

The meeting also spotlighted the Public-Private Partnership (PPP) pipeline, with 21 energy projects underway, including the flagship Aisha Wind Project. Mr. Abebe Gebrehiwot, PPP Director at the Ministry of Finance, acknowledged legal and financial hurdles but affirmed progress: “We are addressing risk perceptions and improving the regulatory framework to attract more private investment.”

In closing, H.E. Semereta Sewasew, State Minister of Finance, called for continued collaboration: “Energy is a strategic resource. We must align policy, regulation, and financing to unlock its full potential.”

The meeting concluded with a strong consensus on the importance of sustained collaboration between the Government of Ethiopia and its development partners. Participants reaffirmed their commitment to supporting Ethiopia’s energy transition through coordinated investments, policy alignment, and technical assistance. As the country moves forward with the implementation of its National Energy Compact, the energy sector is poised to play a transformative role in driving inclusive growth, improving public service delivery, and enhancing regional integration.