Policy recommendations

1. Enhance intra and inter ministerial and cross sectoral co-ordination to promote effective development of Ethiopia’s energy sector and ensure the mainstreaming of energy issues and priorities across all sectors.

2. Clarify each ministry’s and government institution’s institutional mandates, roles and responsibilities to improve predictability for investors.

3. Systemise data collection to improve the tracking, monitoring and reporting of energy data.

4. Use the momentum of hosting COP32 to accelerate progress on energy and attract investment.

5. Enhance clarity and transparency for market participants and investors about the market structure.

6. Enhance energy security and resilience through diversified power generation and regional power trading.

7. Strengthen integrated power system planning to improve efficiency and reliability and meet the country’s growing economic and social needs.

8. Further enhance the overall energy business environment to accelerate access to private capital.

9. Design a complementary renewable-based power system.

10. Promote the deployment and use of renewable energy technologies for power and heat in economic activities.

11. Ensure the long-term sustainability of Ethiopia’s domestic bioethanol and biodiesel production.

12. Design and implement a well-structured, transparent and competitive auction system.

13. Prioritise reliable electricity services through targeted grid upgrades in high-potential areas to unlock a virtuous cycle of demand growth, stronger utility finances and sustainable electrification.

14. Address affordability barriers to support the achievement of on-grid and off-grid electrification targets.

15. Enable private mini-grid investment through clearer integrated geospatial planning, reduced regulatory uncertainty and targeted market facilitation.

16. Develop a comprehensive implementation plan for the Clean Cooking Roadmap, aligned with the National Electrification Program, that sequences grid modernisation and expansion with households’ ability to adopt and afford clean cooking solutions.

17. Consider broadening the mix of clean cooking solutions and prioritising high-efficiency stoves to help meet the Clean Cooking Roadmap’s access rate targets.

18. Create an enabling environment for clean cooking that attracts the investment required for the transition, strengthens local market actors and drives household adoption.