Addis Ababa, August 18, 2025 (FMC) — Ethiopia’s Ministry of Water and Energy has announced that national electricity coverage has reached 54 percent of the population, marking a significant step in the country’s ongoing efforts to expand access through both traditional and renewable energy sources.
State Minister of Water and Energy Sultan Wali told the local news agency ENA that the government has launched a new program to accelerate electricity access, with particular attention to communities not yet connected to the national grid.
He explained that while grid extension remains central to the government’s strategy, special focus is being given to off-grid solutions such as solar and biogas technologies to electrify remote villages. Ethiopia’s solar energy sector, he noted, has recorded strong growth, with improved capacity and affordability making renewable solutions increasingly accessible to households.
Financial institutions and development partners have also played a vital role in supporting Ethiopia’s electrification efforts. Sultan underlined their contributions in financing projects that aim to bring reliable power to underserved areas.
Misrach Sisay, Director General of the Ethiopian Solar Energy Development Association, said that policy measures have encouraged greater private sector participation, with more than 100 member companies currently providing solar-powered solutions to rural communities. She emphasized the importance of expanding technological support to boost agricultural productivity and called for low-interest loans to help farmers adopt renewable energy technologies.
Geremew Kefyalew, Business Development Team Manager at Oromia Cooperative Bank, confirmed that the bank is collaborating with development partners to finance renewable energy initiatives. He stressed, however, that the lending capacity of financial institutions must be strengthened to meet the fast-growing demand.
To further advance its energy agenda, the Ministry of Water and Energy recently signed an agreement with the International Solar Alliance (ISA) to implement solar mini-grid and solar park projects. The partnership is expected to enhance financial and technological cooperation, particularly in applying solar energy to irrigation and drinking water supply.
Ethiopia’s electrification progress is being achieved through a blend of large-scale infrastructure projects, such as the Grand Ethiopian Renaissance Dam (GERD), and decentralized renewable energy solutions including solar and wind power—ensuring that the benefits of development extend to communities nationwide.