Addis Ababa, October 27, 2026 (FMC) – Ethiopia has unveiled the third phase of its National Electrification Program (NEP 3.0), shifting the focus of electricity expansion beyond connecting households to the power grid toward using reliable and affordable energy to drive productivity, economic growth and improved public services.
The Ministry of Water and Energy officially introduced the program in collaboration with domestic and international partners during the Third Water and Energy Week underway in Addis Ababa.
Mesfin Dabi, the Ministry’s Executive Officer for Electrification and Energy Information, described NEP 3.0 as a new phase in the country’s energy-sector development, designed to link electricity access more directly with productive activities and socioeconomic transformation.
Unlike earlier approaches that primarily emphasized extending power lines and installing meters, the new program seeks to integrate electricity into agricultural processing, irrigation, grain milling, poultry farming, textile manufacturing and digital infrastructure.
The approach aims to ensure that expanded electricity access translates into greater productive capacity, enabling farmers, businesses and communities to use energy to increase output, improve services and support economic activity.
Mesfin said the program would also prioritize making reliable and affordable electricity available to households, farmers, schools and health institutions, alongside efforts to expand access.
Improving the efficiency of the power system is another key component. The program plans to deploy smart metering technologies and introduce tariff reforms to reduce electricity losses in transmission and distribution networks.
It also envisages establishing a national energy information management framework under the Ministry of Water and Energy to support evidence-based planning and decision-making across the sector.
Expanding decentralized electricity supply is another priority, with the program seeking to promote small-scale, off-grid solar power systems through public-private partnerships. Such systems can help extend electricity services to communities and users beyond the reach of the main grid.
By combining expanded access with productive uses of electricity, improved system efficiency, stronger energy data management and off-grid solutions, NEP 3.0 aims to make electrification a more direct contributor to Ethiopia’s economic development.
The program’s emphasis on agriculture, industry and digital infrastructure reflects the role of dependable energy in supporting businesses, improving agricultural productivity and broadening access to essential services.
Its implementation will therefore involve not only extending electricity connections but also strengthening the systems and partnerships needed to ensure that energy is affordable, reliable and useful for households, public institutions and productive enterprises.