Economy
Ethiopia's Clean Power Potential Held Back by Infrastructure Gaps
Capital Ethiopia · 5 hours ago · Read the Full Story on Capital Ethiopia
AI SUMMARY
A new global analysis shows that while Ethiopia has abundant clean electricity, limited energy access and infrastructure are hindering its broader economic electrification.
- Ethiopia scores 45 per cent for deployment and 38 per cent for enabling conditions in the Electrification Competitiveness Index.
- It is the only country in the Index where on-the-ground progress outpaces supporting policies and conditions, placing it in the "risk of stalling" group.
- Around 40 per cent of the population still lacks electricity access, and only 55 per cent had access in 2023.
- Electric cars accounted for 60 per cent of new passenger car purchases in 2024 following import bans and tax incentives.
- Electricity accounts for only 2 per cent of residential energy consumption, with biomass remaining the primary cooking fuel.
- Industrial electrification remains limited, with much of the sector continuing to rely on oil and coal despite low-cost power availability.
- Parliament approved a US$145.8 million concessional loan from the International Development Association to modernize electricity infrastructure and expand reliable access.
- The Index recommends accelerating the National Electrification Programme, expanding grid and off-grid systems, and attracting investment through market reforms.
- The report was developed by the We Mean Business Coalition with support from RMI and assesses 16 countries.
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