Ethiopia Seeking Renewable Energy Investment, Stronger Public-Private Partnerships

Addis Ababa, October 15, 2026 (ENA) — Ethiopia is seeking increased investment and stronger public-private partnerships to expand renewable energy use and support agricultural productivity, business growth and improved livelihoods.

The ongoing Second Ethiopian Renewable Energy Summit 2026 which opened today focuses on attracting investment, expanding energy access and strengthening the contribution of renewable energy to the country’s economic development.

Water and Energy Minister Habtamu Iteffa, through his representative, noted that electric power is essential for economic transformation, industrial development, public services, agricultural productivity and improved living standards.

 

Therefore, Ethiopia needs to expand its national grid while complementing it with decentralized renewable energy solutions, including solar home systems, mini-grids and technologies that enable businesses and communities to use energy productively.

“Our objective must be to move from dialogue to investments, from isolated initiatives to scale-up solutions, and from commitments to implementation,” he said.

The Minister also underscored the importance of private-sector participation in the energy transition through capital investment, technical expertise, innovation, distribution networks, job creation and local manufacturing.

He said expanding the market requires a predictable policy and regulatory environment, access to finance and foreign exchange, quality standards and business models that make renewable energy solutions affordable and sustainable.

Agriculture Minister Addisu Arega, through his representative, highlighted the role of renewable energy in improving agricultural production, addressing climate-related challenges and strengthening farmers’ resilience to irregular rainfall and rising production costs.

 

He said solar-powered irrigation can improve farmers’ access to water, reduce dependence on diesel-powered pumps and support crop diversification.

Renewable energy can also power cold storage, refrigerated transport and other facilities that help preserve agricultural products and reduce post-harvest losses.

Moreover, renewable energy can support agricultural processing, dairy production, rural water supply, veterinary services, digital agriculture and access to agricultural inputs.

However, high upfront costs, limited access to affordable finance, gaps in technical skills and challenges in equipment maintenance remain barriers to wider adoption.

Addisu emphasized the need for stronger public-private partnerships, technical training, affordable financing and coordinated planning across the agriculture, water and energy sectors to ensure that renewable energy technologies meet the needs of farmers and rural communities.

For her part, Ethiopian Solar Energy Development Association (ESEDA) General Manager Yemissirach Sisay said the summit seeks to demonstrate the readiness and capacity of private companies to contribute to Ethiopia’s energy transition and turn the country’s renewable energy potential into practical results.

 

“The private sector is not waiting on the sidelines of national development,” she noted.

The General Manager highlighted opportunities in solar-powered water pumps for smallholder farmers, mini-grids for communities without adequate electricity access, clean cooking technologies and sustainable electric mobility.

Addressing investment risks, foreign exchange constraints, taxation and financing challenges would help local companies expand from small-scale distribution to larger renewable energy projects.

Yemissirach also stressed the importance of cooperation among African renewable energy associations to share experience, improve regulatory coordination, expand regional trade and support the development of a more integrated African energy market.

The summit has brought together representatives of the government, renewable energy companies, private-sector investors, financial institutions, development partners and other stakeholders

The summit, which runs up to 17 October 2026, provides a platform for collaboration and investment in the renewable energy sector.