As Africa navigates the complexities of the 21st century, the African Union’s Agenda 2063 stands as the definitive blueprint for a prosperous and integrated continent. Yet, as of 2026, the realization of this vision is tethered to a stark reality. While the continent is home to nearly 20% of the world’s population, it accounts for less than 4% of global electricity demand. Over 600 million Africans still live without reliable power, a deficit that costs the continent an estimated 2 to 4 percent of its annual GDP.
However, the tide is turning. Driven by the Continental Power System Masterplan, Africa is aggressively shifting toward an integrated energy future. The focus has moved from isolated national grids to the creation of the African Single Electricity Market, which is destined to be the world’s largest interconnected power market. In this continental shift, the emphasis is no longer just on how much power we generate but on how effectively we share it across borders.
Ethiopia: The Structural Anchor of the EAPP
Regionally, the continent’s energy landscape is defined by its five Power Pools, each at a different stage of maturity. While the Southern African Power Pool has historically led in market transparency, the Eastern Africa Power Pool, in which Ethiopia is a founding member, is currently the fastest growing corridor for renewable integration.
Historically, East Africa was a collection of energy islands, nations with surplus potential but no means to transport it, situated alongside neighbors suffering from chronic blackouts. In this regional puzzle, energy is the invisible thread binding industrialization to economic sovereignty.
Ethiopia has emerged as the structural anchor of the EAPP and a primary catalyst for the AfSEM. The EAPP, aimed at coordinating cross border power trade, finds its most reliable baseload in the Ethiopian highlands. With an installed capacity that has recently reached 9.7 GW, Ethiopia is the first nation in the region to demonstrate the viability of large scale renewable integration.
By leveraging its unique geography and sovereign investment, Ethiopia provides the stability the regional market requires to thrive. We are not just building a national grid but architecting the foundational electricity highway that will eventually link the Mediterranean to the Cape.
Regional Stability through Power for Peace
Our role in the EAPP has evolved from a simple exporter to a regional stabilizer. By connecting the synchronized networks of Sudan and Djibouti with the high voltage corridor to Kenya and Tanzania, Ethiopia has created a resilient energy ecosystem. In the 2024/25 fiscal year alone, Ethiopia generated 118.1 million USD from power exports, proving that regional interconnection is a profitable and sustainable model for mutual growth.
This strategy directly fulfills several flagship goals of Agenda 2063. Ethiopia serves as a central node in the North South transmission corridor, facilitating a linked grid from Cape to Cairo. By generating 100% of its power from renewable sources, primarily hydro and wind, Ethiopia provides a model for African energy independence and reduces the continent’s reliance on imported fossil fuels.
For Ethiopia, energy interconnection is as much about diplomacy as it is about kilowatt hours. Prime Minister Abiy Ahmed recently noted that electricity is power for peace, a sentiment that redefines regional security. When lines like the 500kV Ethio Kenya link or the Hurso Aysha project go live, they create bonds of mutual economic interest. This interdependence is the most effective deterrent to conflict, making shared prosperity the ultimate guarantee of peace.
Energizing the Vision of Africa
While current milestones are historic, the roadmap for the next four years is even more ambitious. Under the National Energy Compact and the 10 Year Development Plan, Ethiopia aims to double its output to 19.9 GW by 2030. This expansion is a direct contribution to Agenda 2063 Goal 10, which envisions world class infrastructure crisscrossing the continent. Our Green Growth philosophy serves as a blueprint for the Mission 300 initiative, aimed at halving the energy access gap in Africa by the end of the decade.
The future of Ethiopian energy is not just about wires but high value industrialization, a core pillar of the African Continental Free Trade Area.
Green Hydrogen: With abundant water and low cost renewable power, Ethiopia is positioning itself as a global contender for green hydrogen. This aligns with the African Energy Efficiency Strategy, turning our wind and solar rich eastern regions into hubs for clean fuel and domestic fertilizer production, ensuring both food and energy security for the continent.
E Mobility: Ethiopia is leading the continent by banning internal combustion engine passenger car imports and targeting 148,000 EVs by 2030. This shift reduces foreign currency outflow and positions Ethiopia as an early mover in the African Green Minerals Strategy, proving that sustainable transport is achievable in emerging economies.
An Investment Destination for a Green Continent
The bright future of our energy sector is an open call to the global private sector. With the liberalization of the foreign exchange market and robust Public Private Partnership frameworks, Ethiopia has become a magnet for Foreign Direct Investment. From the geothermal fields of the Rift Valley to the wind corridors of Somali, Amhara, and Tigray, the next decade will see the private sector taking a lead role in generation. This shift allows the state to focus its resources on modernizing the transmission architecture that serves as the heartbeat of the regional market.
As we look toward hosting COP-32 in 2027, Ethiopia’s role is clear. We are the laboratory where Agenda 2063 is being proven and scaled. By turning our rivers, wind, and thermal heat into a regional commodity, we are proving that an integrated Africa is not a distant dream but a reality being built one transmission tower at a time. The Horn of Africa is no longer defined just as a region of origins. It has become the definitive power source of Africa’s industrial future.
Moges Mekonnen is a seasoned media expert with over 25 years of experience, including 18 years at the Ethiopian Broadcasting Corporation (EBC) as a senior editor, investigative journalist, and program host. Currently the Corporate Communication Director and Spokesperson for Ethiopian Electric Power (EEP), he leverages his deep editorial background to lead the narrative on Ethiopia’s energy sovereignty.
