National Electrification Program 2.0 (NEP 2.0)

The NEP 2.0 is Ethiopia’s action plan to achieve 100% universal electricity access by 2025. The program targets 65% grid connectivity and 35% off-grid solutions (solar systems and mini-grids), requiring 8.2 million new grid connections and providing off-grid services to 6 million households. 

To support this, the government is funding large electricity network spending programmes, including a projected US3.2billion for grid intensification and expansion by 2025, supported by a US480 million government equity contribution. Additionally, the state has conducted preliminary assessments for network rehabilitation and strengthening totalling US$2.4 billion. 

Regarding power generation spending programmes, the government has historically led massive investments to quadruple capacity to 4,300 MW, with ongoing funding for mega-projects like the Grand Ethiopian Renaissance Dam (6,000 MW) and the Koysha Hydro Power Plant (2,160 MW). 

While generation is shifting toward private Independent Power Producers for solar and wind, the government continues to play a central role in financing and off-taker functions. 

Finally, the NEP 2.0 integrates clean cooking access by supporting the National Improved Cookstove Program, which targets the distribution of 12 million extra cookstoves, and the National Biogas Program targeting 360,000 low-income households. Affordability for these technologies is further supported by a 5% allocation of the government-backed Market Development Credit Line.

Want to know more about this policy ? Learn more