The Ethiopia Electric Utility (EEU) has announced an ambitious 25-year electricity distribution master plan requiring an estimated $30.6 billion in total capital investment to accommodate rising national power demand. Designed to overhaul the country’s energy infrastructure, the strategic framework addresses projections showing national electricity demand rising nearly ninefold over the next quarter-century, growing from the current capacity of approximately 4,300 megawatts to nearly 39,000 megawatts.
To execute the long-term vision, the utility has structured the expansion into phased stages, beginning with a short-term investment program valued at $1.3 billion. This initial phase prioritizes the urgent modernization and expansion of distribution networks across the country. Under the immediate plan, EEU intends to construct 16,500 kilometers of new medium-voltage distribution lines while simultaneously rehabilitating 9,700 kilometers of existing lines to bolster grid stability.
Complementing the line expansion, the technical scope of the short-term phase focuses heavily on upgrading power transformer equipment. EEU plans to execute 21,800 distribution transformer interventions and integrate an additional 6,945 megavolt-amperes of transformer capacity into the system. These targeted measures aim to modernize aging assets, alleviate frequent local power outages, and minimize technical system losses during distribution.
Financial allocation for the initial phase varies significantly across geographic regions based on population density and local infrastructure demands. According to EEU project estimates, the capital city of Addis Ababa is scheduled to receive $575 million during the short-term investment cycle, while the surrounding Oromia region will require $478 million to support both expanding municipal centers and regional electrification initiatives.
EEU representatives emphasized that the comprehensive 25-year master plan is vital for ensuring long-term grid reliability while supporting Ethiopia’s ongoing economic expansion. By establishing a robust, modernized distribution network capable of handling massive demand increases, the public utility aims to ensure secure energy delivery for both industrial operations and residential consumers nationwide.