Ethiopia faces the third highest electricity access deficit in Sub-Saharan Africa with an access rate of 51 percent in 2020[1], even as the Government and the utilities have made some concerted efforts to expand access. Over 56 million people lack electricity access, with the majority in rural areas (93 percent of urban houses are connected versus 40 percent of rural households – mainly through standalone solutions). More than half of those connected to the grid are not formally registered as consumers with the utility. Per capita electricity consumption in Ethiopia is 69 kWh compared to the world average of about 3,131 kWh. The National Electrification Plan (NEP) launched in 2017 and further elaborated in 2019 (NEP2.0) presented an investment roadmap for achieving universal access by 2025 through grid and off-grid solutions, and 96 percent on-grid access by 2030. Despite well-performing World Bank-funded access expansion projects, the broader NEP program is delayed by nearly a decade and is constrained by limited funding, weak implementation capacity, limited contractor capacity, and the need to import key electrification materials.
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