Ethiopia Moves to Localize Energy Solutions, Reduce Import Dependence

Addis Ababa, January 27, 2026 (ENA) -Ethiopia has announced a major push to ensure the availability of domestically manufactured energy solutions, marking a significant shift toward local production and technology localization in the energy sector.

The Ministry of Innovation and Technology revealed that, in collaboration with China Southern Power Grid Technology and EDAN Power Group, Ethiopia has entered a new phase aimed at reducing reliance on imported energy technologies.

The initiative represents a paradigm shift toward “Made in Ethiopia” energy solutions and the localization of advanced power technologies.

Speaking at the launch event, State Minister of Innovation and Technology Baysa Bedada underscored the central role of electricity in national development, stating that reliable power supply is fundamental to technological progress and indispensable to Ethiopia’s digital transformation agenda.

He emphasized that dependable energy infrastructure is not optional but essential for achieving the country’s long-term digital and economic goals.

Baysa noted that the partnership between China Southern Power Grid Technology and EDAN Power Group is a strategic step toward strengthening Ethiopia’s energy sovereignty.

The collaboration is expected to enable the country to manufacture modern energy solutions domestically, using local capacity and expertise.

He further explained that meeting Ethiopia’s rapidly growing energy demand in a sustainable manner will require integrating renewable energy sources and localized mini-grid systems alongside the national grid.

 Such an approach, he said, is particularly critical for entrepreneurs and businesses operating across diverse regions of the country.

EDAN Electro Power Group CEO Endris Adem stated that the collaboration will significantly enhance national energy security by accelerating technology transfer and digitalization, expanding renewable energy supply, and strengthening stakeholder participation across the energy ecosystem.

According to the CEO, the partnership reflects a shared commitment to joint investment, infrastructure development, and domestic production aligned with the National Electrification Program and Digital Ethiopia 2030.

Zhao Ziyi, Secretary of the Board of Directors of China Southern Power Grid Technology, said the partnership will allow advanced Chinese power technologies to be adapted to Ethiopia’s practical conditions and development priorities.

He reaffirmed the company’s commitment to close cooperation with Ethiopian partners, highlighting planned collaboration on modern power grid systems and advanced energy storage technologies to address the country’s current and future energy needs.

“This signing ceremony provides an opportunity to strengthen cooperation with Ethiopian institutions and stakeholders across the entire energy value chain,” Zhao added.

The initiative also places strong emphasis on sustainability, technology transfer, and human-capacity development.

Through targeted training programs and close institutional cooperation, the Ethiopia–China energy partnership aims to build long-term local expertise and technical capability.

Government officials stressed that Ethiopia will provide all necessary support to create an enabling environment for local technology companies.

This includes facilitating collaboration with international firms, supporting the acquisition of technological know-how, and ensuring effective technology transfer to strengthen the country’s domestic energy industry.