How much does electricity cost in Ethiopia?

Such a mechanism is in line with the tariff guidelines and can be linked to or combined with the four-year tariff adjustment plan. Hydropower costs range from 3-5 cents per kWh, and wind and solar costs are between 5-7 cents per kWh. These cost structures align with Ethiopia's export tariffs to Kenya, which are priced at USD 6.5 cents per kWh.

What is the institutional setup of the energy sector in Ethiopia?

Current institutional setup of the energy sector in Ethiopia Ministries and main agencies and departments that deal with energy issues: Ministry of Water, Irrigation and Electricity (MoWIE) - Regulatory policy and decision making, energy operations, implementation and supervising other governmental agencies and enterprises.

How much does hydropower cost in Ethiopia?

The costs to explore hydropower potential are relatively low. In fact, hydro installation in Ethiopia costs about US$1,200 per installed kW, or about half the cost of most other plants being built in eastern Africa. Thus, unit generation costs of planned hydropower plants are calculated to be below USD 0.05 per kWh.

How much power does Ethiopia have?

Ethiopia’s current 5,200 MW of installed generation capacity reaches less than 60% of the country’s population. The GOE plans to increase power generation capacity to 17,000 MW in 10 years, but electricity demand may still outstrip supply owing to continued economic development and population growth. Source: Ethiopian Electrical Power

How much electricity does Ethiopia produce in 2040?

The share of so-lar in electricity generation reaches 17% in 2040. Ethiopia’s net electricity exports until 2036 will pri-marily be driven by large-scale hydropower invest-ments. However, net import of electricity is ex-pected from 2038, as the pace of demand growth in Ethiopia exceeds that of supply, in the least-cost development. See Figure 6.4.

Who owns power plants in Ethiopia?

Currently, all operational power plants in Ethiopia are under the state-owned EEP. Future investments in hydro, wind, solar, and geothermal projects is planned to have private ownership, with EEP acting as the primary electricity purchaser. Solar PV IPP auctions were announced in February 2025, with a total capacity of 225 MW in Gad and Weransso.