ADDIS ABABA, Ethiopia — Ethiopian Electric Power (EEP) has reported earning more than $31.5 million from cross-border electricity sales in the first quarter of the current fiscal year, reflecting the country’s growing role as a regional energy hub. “We remain committed to meeting the expanding power needs of neighboring countries,” EEP Chief Executive Officer Ashebir Balcha said, according to reporting by the Ethiopian Herald. “Our strategy focuses on improving power development, accessibility, and regional cooperation.”
Ethiopia currently exports electricity to Sudan, Djibouti, and Kenya. A new agreement to supply Tanzania through an interconnector with Kenya will begin with 100 megawatts, further increasing revenue potential. The Ethiopian News Agency reports that although 90 percent of Ethiopia’s power generation is consumed domestically, the nation is steadily expanding its export capacity to foster economic integration across East Africa.
Boosting Capacity and Infrastructure
A key enabler of Ethiopia’s export ambitions is the completion of the Ethiopia-Kenya power transmission line, a significant part of the East Africa Electric Highway Project. This high-voltage connection facilitates reliable electricity flow between the two countries. The same transmission line is being tested to supply Tanzania, an endeavor that could help generate an estimated $200 million annually once fully operational.
Additionally, neighboring nations such as South Sudan and Somalia have expressed keen interest in tapping into Ethiopia’s relatively affordable and renewable power sources. Officials note that feasibility studies and infrastructure investments must be completed before the new connections can become a reality. Ethiopia’s broader plan is to leverage its hydro and solar resources to become a top energy exporter, filling gaps in regional electricity demands.
Expanding Solar Access at Home
While exporting power offers an attractive source of foreign revenue, the Ethiopian government and energy agencies are also focused on closing domestic electricity gaps. The Ethiopian Electric Utility (EEU), which recently added 167,900 new customers in the first five months of the fiscal year, reported its overall customer base has grown to nearly five million.
In an effort to reach remote areas unconnected to the main grid, the EEU is expanding investments in solar power. “We want to ensure that even the most isolated regions in Ethiopia can benefit from reliable electricity,” said an EEU official in a statement, underscoring the government’s commitment to universal electrification goals.
Regional Integration and Economic Growth
The flurry of new deals and infrastructure developments underscores Ethiopia’s broader objective of strengthening relationships with its neighbors while positioning itself as a leading renewable energy powerhouse in Africa. By exporting electricity, Ethiopia not only diversifies its revenue streams but also bolsters diplomatic and economic ties throughout the region.
Yet questions remain about the sustainability of Ethiopia’s energy surge. Will the country continue to invest in grid upgrades and maintain stable power production while meeting domestic needs? How will new connections with nations like Tanzania, South Sudan, and Somalia shape broader economic integration and policy decisions in East Africa?
For now, experts and officials are cautiously optimistic. With large-scale hydroelectric projects on the horizon—paired with growing interest in solar and other renewables—Ethiopia appears poised to maintain its upward trajectory in electricity exports. If the revenue generated indeed climbs toward the projected $200 million per year, that windfall could accelerate the nation’s overall growth and further cement its status as an emerging energy leader.