Ethiopian Electric Utility (EEU) has announced a 25-year national electricity expansion and improvement master plan running through 2049. EEU Chief Executive Officer Getu Geremew positions the roadmap as a long-term commitment to grid reliability, digitalisation and economic transformation. Peak power demand is projected to multiply almost ten-fold over the period.

Long-term grid roadmap for a growing economy

EEU’s master plan sets out a comprehensive upgrade of the country’s distribution infrastructure as a core national priority. Ethiopia’s peak electricity demand is projected to rise from 4,289 MW in 2025 to 39,327 MW by 2049. Rapid population growth, urbanisation, industrial expansion and the emergence of electric mobility are the primary drivers. This forecast, if realised, would place electricity at the centre of Ethiopia’s development trajectory.

To meet the projected demand, the study estimates that Ethiopia will need to construct 128 new substations across the country by 2049. These assets are intended to strengthen the distribution backbone, reduce technical losses and improve voltage stability, particularly for industrial and urban customers. The master plan frames these investments as critical not only for reliability but also for unlocking new industrial zones and supporting transport electrification.

Getu Geremew has described the roadmap as a landmark effort to modernise and digitise the national distribution system. The emphasis on digital tools aligns with wider moves in the sector, where Ethiopian Electric Power is also pursuing command-and-control modernisation backed by concessional financing from European partners. Together, transmission and distribution upgrades aim to reduce outages, enhance system visibility and improve operational efficiency.

The new plan sits alongside Ethiopia’s National Electrification Programme 3.0, a Ministry of Water and Energy framework targeting universal access to reliable, affordable and sustainable electricity by 2035. While NEP 3.0 focuses on both grid and off-grid solutions, EEU’s distribution roadmap provides the medium-term infrastructure spine needed to carry growing volumes of power from an expanding generation base, which already exceeds 9,730 MW of installed power generation capacity.

Investment signals in substations and digital grids

For investors, the Ethiopia power distribution master plan offers a clearer view of future capital needs in substations, advanced grid equipment and digital control systems. The scale of projected demand growth implies sustained investment opportunities in switchgear, transformers, smart meters and grid-management software.

Recent projects already show how distribution upgrades are attracting blended funding. EEU signed a Birr 3 billion grid rehabilitation and upgrade agreement for western and northwestern Ethiopia, with Alpha TND and Capital Electech to modernise networks around Ambo, Nekemte and Asosa, backed in part by World Bank financing. It involves upgrading 325 kilometres of medium-voltage lines, installing 235 transformers, and is scheduled for completion within two years. That initiative targets outages and bottlenecks that raise operating costs for businesses, signalling how distribution reliability is becoming central to regional economic resilience.

As the new master plan is rolled out, similar structures are likely in other regions, especially as demand from industrial parks and new transport corridors rises. Digitalisation of the grid should also open the door for technology providers and analytics firms. EEU seeks to build a more data-driven distribution system that can manage complex, higher-load networks.

For Ethiopia, the stakes go beyond power engineering. Policymakers see upgraded distribution infrastructure as a foundation for long-term economic growth and social transformation. Reliable electricity supports manufacturing competitiveness, improves public services and enables new business models in logistics and mobility. As a result, the 25-year roadmap positions Ethiopia power distribution as a strategic lever in the country’s development agenda.

Investors and lenders will now watch how EEU sequences projects, secures financing and integrates the distribution plan with generation and electrification strategies. The pace of implementation, regulatory clarity and progress on digital grid capabilities will be key signals for capital allocation into Ethiopia’s power sector over the coming decade.

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