Ethiopia: Rural Citizens Bear the Brunt As Most Ethiopians Still Lack Reliable Electricity Supply

Majority give government poor marks on energy provision.

Key findings

As of 2023, half (50%) of Ethiopians lived in zones served by an electricity grid, though only 43% were actually connected to the national power grid.

As of 2023, half (50%) of Ethiopians lived in zones served by an electricity grid, though only 43% were actually connected to the national power grid.

Only 20% of rural Ethiopians were connected to the grid, vs. 88% of urban residents.

Among citizens who were connected to the grid, 61% said that their electricity worked "most of the time" or "all of the time" - meaning 26% of all Ethiopians enjoyed a reliable supply of electricity.

Electricity ranked fourth among citizens' foremost national priorities, behind only management of the economy, water supply, and infrastructure/roads.

Electricity ranked fourth among citizens' foremost national priorities, behind only management of the economy, water supply, and infrastructure/roads.

Negative ratings were higher among rural and poorer residents than their urban and better-off counterparts.

Although the world is making progress toward the United Nations (2023) Sustainable Development Goals in energy, 675 million people still lack electricity, most of them in sub Saharan Africa (Baskaran & Coste, 2024).

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Ethiopia is at the forefront of the electrification challenge. Despite expansion of the national power grid over the past decade, the country has the third-largest energy-access deficit in sub-Saharan Africa; about half of the population lack access to reliable electricity, making it hard for many citizens to find economic opportunities and escape poverty (World Bank, 2024).

Ethiopia has significant potential for renewable energy, with estimates that it is capable of generating more than 60,000 megawatts (MW) from hydropower, wind, solar, and geothermal sources. About 90% of its current generation is derived from hydropower (International Trade Administration, 2024). However, Ethiopia is only producing 9,761MW at present, less than one-sixth of its potential (Federal Democratic Republic of Ethiopia, 2025).

In 2022, the government completed the Grand Ethiopian Renaissance Dam, Africa's largest ever hydroelectric project (Al Jazeera, 2022). Energy generation started in February 2022, and in September 2023, the fourth and final filling of the dam was successfully completed (Ethiopian News Agency, 2023). The dam is expected to produce more than 5,000MW of electricity. The project has proved controversial, intensifying tensions with downstream countries Egypt and Sudan due to concerns over Nile water availability and regional water security. The dam also represents a major financial undertaking for Ethiopia, with construction costs in the region of U.S. $5 billion (Mbaku, 2020; Al Jazeera, 2025).

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As of 2023, Ethiopia had completed only 30% of its energy-development plan. Experts have identified several constraints preventing better performance, including the government's monopoly on electricity generation, inadequate financing, and poor maintenance systems resulting in technical issues at power plants, all of which have hurt electricity access, industrial growth, small-business development, and employment (Tesfay, Gebreslassie, & Lia, 2024).

Findings from a 2023 Afrobarometer survey show that three-quarters of Ethiopians lacked access to reliable electricity, reflecting both limited grid access and poor service reliability. Service delivery was highly unequal, with rural residents and poor citizens far less likely than urban and better-off respondents to enjoy a stable supply of electricity.

Electricity ranked fourth among Ethiopians' most important problems requiring government intervention, behind only management of the economy, water supply, and infrastructure. Nearly two-thirds of citizens gave the government poor performance ratings on its provision of electricity.

Frehiwot Sinishaw Alamirew Frehiwot Sinishaw Alamirew is programme coordinator for L-IFT BV (Low-Income Financial Transformation) Research Co.