@engineerkirubelontech: A new Energy Policy outlines sweeping reforms aimed at placing Ethiopia’s state-owned power utilities on a path toward full cost recovery by 2028, while expanding electricity access and boosting foreign currency earnings from the energy sector. The draft policy, approved by the Council of Ministers on May 26 and reviewed by The Reporter, comes more than three decades after Ethiopia adopted its first national energy policy in 1994. According to the document, the government is implementing a gradual, study-based tariff reform program intended to ease mounting financial pressure on Ethiopian Electric Power (EEP) and Ethiopian Electric Utility (EEU). “EEP and EEU have been under immense debt pressure,” the draft policy states. “To relieve the institutions from these debt burdens, the policy aims to enable them to fully cover their expenditures by 2028.” The policy indicates that a tariff structure allowing full cost recovery is expected to become fully operational within the next two years. Electricity tariffs will thereafter be reviewed periodically through what the document describes as a transparent process based on actual operating costs. The reforms are also expected to replace broad wholesale electricity subsidies with a targeted subsidy framework designed to protect low-income and vulnerable households. Under the new policy, the government plans to raise national electricity access to 78 percent of the population through grid expansion, while households outside the grid are expected to rely on solar and other off-grid technologies. Hydropower will remain the backbone of Ethiopia’s energy strategy, but the government said it plans to diversify the country’s energy mix by expanding wind, solar, geothermal, natural gas and biomass projects based on economic viability. The policy also opens the door for greater private sector participation through Public-Private Partnerships (PPPs). Private investors are expected to participate not only in electricity generation, but also in transmission infrastructure, off-grid distribution and power sales. To facilitate this shift, the government said it plans to establish a legal and regulatory framework aimed at encouraging both domestic and foreign investment in the energy sector. Incentives for private participation in generation, transmission and distribution projects are also under study. The document states that Ethiopia’s first energy policy, enacted in May 1994 under the Transitional Government of Ethiopia, remained in effect until May 2026. The new policy is expected to be reviewed and updated every five years based on implementation outcomes and changing national priorities. #policy #news #ethiopian_tik_tok🇪🇹🇪🇹🇪🇹🇪🇹 #solar #electrical

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Tuesday 16 June 2026 15:10:17 GMT