Ethiopia 2026

Ethiopia is one of Africa’s largest and fastest-growing economies, with increasing regional influence and a growing global presence. The country has set out an ambitious development vision, supported by major infrastructure investments that are transforming its energy landscape. Landmark projects such as the Grand Ethiopian Renaissance Dam have significantly expanded power generation capacity, strengthened energy security and reinforced Ethiopia’s role in regional electricity trade.

Ethiopia’s predominantly renewable power system, major investments in generation capacity and far-reaching energy sector reforms provide a strong foundation for meeting growing energy demand. The energy sector will play a central role in advancing Ethiopia’s development ambitions and strengthening its regional leadership.

This Energy Policy Review of Ethiopia was prepared in collaboration between the Government of Ethiopia and the International Energy Agency (IEA), building on their growing partnership and as Ethiopia prepares to host COP32 in 2027.

Following an in-depth review mission conducted with the Government of Ethiopia in Addis Ababa, this report assesses the country’s energy policies, progress and remaining challenges. It provides policy recommendations to strengthen implementation, mobilise investment, expand access to electricity and clean cooking and support Ethiopia’s goals for a transition towards a secure, sustainable, affordable and inclusive energy future.