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A rapidly expanding generation base is putting Ethiopia’s power network under pressure to keep pace, making transmission investment central to the country’s energy ambitions. Ethiopian Electric Power (EEP) has allocated 313.8 billion Birr (US$1.9 billion) for the 2026-27 fiscal year, with 70.3% directed towards capital expenditure as the country works to expand electricity access and build a more integrated power system by 2030.
The budget underscores the scale of infrastructure required to support Ethiopia’s growing power system, with EEP targeting 9,770 megawatts (MW) of installed generation capacity and 32,134 gigawatt-hours of electricity production during the fiscal year. The investment forms part of a broader drive to position the country as a major renewable-energy hub in East Africa. Industrial Info Resources data show more than 100 active power capital and maintenance projects in Ethiopia, with a combined value of US$48.7 billion, pointing to a substantial pipeline of infrastructure development across the sector.
The expansion comes as Ethiopia works to raise electricity access from about 54% to 75% by 2030. EEP says installed generation capacity has more than doubled over the past seven years to about 9,752 MW, while national electricity access has risen from 44% to approximately 54%. The World Bank-supported National Energy Compact has also set a 75% electricity-access target for 2030, with grid expansion and clean-energy infrastructure identified as central to achieving it.
Transmission infrastructure is increasingly becoming the backbone of the country’s next phase of power-sector development. EEP has identified 56 transmission projects for 2026-27, including 27 already under construction, 22 targeted for completion and seven in the tendering stage. 13 of the projects are scheduled for full commissioning during the fiscal year, reflecting the urgency of expanding the network alongside new generation capacity. The scale of planned investment highlights the growing importance of transmission infrastructure in converting Ethiopia’s expanding generation base into broader and more reliable electricity access.
