Wedoany.com Report on Feb 5th, Ethiopia and the United Kingdom have recently signed a $400 million grid upgrade agreement, utilizing a Public-Private Partnership model to advance the modernization of the country's power infrastructure. The signing ceremony took place in Addis Ababa, with Ethiopian Finance Minister Ahmed Shide and Gridworks CEO Chris Flavin representing their respective sides. Ethiopian Prime Minister Abiy Ahmed and UK Foreign Secretary Yvette Cooper were jointly present, highlighting the significance of this cooperation for bilateral relations.
According to the agreement, Gridworks will invest $400 million to construct two high-voltage transmission lines, marking Ethiopia's first introduction of the Public-Private Partnership model in the power transmission sector. This grid upgrade project is expected to enhance grid reliability and expand electricity coverage in key regions.
The first transmission line, spanning 206 kilometers, will connect the Somali region in eastern Ethiopia with the central and northeastern grids. This area is currently not connected to the national backbone grid. Once completed, the new line will improve the stability of power supply, support the development of local businesses, and bring growth opportunities to communities that have long faced insufficient power supply.
The second line, measuring 198 kilometers, is located in northeastern Ethiopia and will primarily serve large-scale wind and solar projects planned for the region. By strengthening the transmission network, Ethiopia will be able to utilize renewable energy more effectively and deliver clean power to domestic users and neighboring countries. The project will also enhance electricity interconnection with Djibouti, promoting power trade and energy security in the Horn of Africa.
These investments align with Ethiopia's 2030 Ten-Year Development Plan, which aims to achieve a 96% electricity access rate and increase installed capacity to 20 gigawatts. Currently, about half of the country's population lacks access to stable electricity, and power outages continue to hinder industrial development and job creation.
During her visit, UK Foreign Secretary Yvette Cooper stated: "Better infrastructure and stable jobs can create stronger opportunities locally." In addition to the grid project, the UK has also committed to providing £17.5 million in technical assistance to help Ethiopia improve its public investment management. These measures collectively aim to drive long-term economic growth, reduce poverty, and position Ethiopia as a key player in the renewable energy sector in East Africa.
