Gridwords to Execute $400M Plan to Expand Electricity Access in Ethiopia

Following the operationalization of the Great Ethiopian Renaissance Dam (#GERD), the focus now shifts to the transmission and distribution of the green energy generated to all four corners of Ethiopia. With the financing backing of the UK government, Gridworks signed an agreement to enhance the green #ElectricityAccess in Ethiopia and upgrade its electricity grid. The signature ceremony took place during the visit of British Foreign Minister Yvette Cooper on the 2nd of February, 2026.

The Agreement is a historical milestone as it is the first Public-Private Partnership (PPP) in Ethiopia. Previously, Ethiopia was somewhat reluctant to involve the private sector and appeared to want to maintain full state control over strategic sectors.

In the initial phase, the project will link up Ethiopia’s Somali region to the central and northeastern power grids. These regions have long lagged behind in #ElectricityAccess compared to other regions of the country.

The Project also involves the development of solar and wind potential in the northeast region, with possible interconnections with and export to neighboring Djibouti.

Ethiopian Finance Minister Ahmed Shide underlined that the projects will accelerate the industrialization policy of the government as electricity becomes more accessible, affordable, and reliable. British Ambassador Darren Welch underscored that the UK is proud to be associated to a project that will bring tanglible to communities across the country, while giving a boost to the #EnergyTransition. In addition, the UK government is providing a GBP 17.5 million in grant to support the project technically.

Ethiopia is one of the largest countries in Africa with a population of 120 million, and it is estimated that half of the population are still waiting to be connected to the grid. Delivering the electricity to every household remains the key challenge, and this project is a step in the right direction.