European Union, France and Ethiopia Sign €120 Million Flagship Agreement to Modernise Power and Digital Infrastructure

RISED aims to accelerate Ethiopia’s green and digital transitions by making the national electricity grid stronger, smarter and greener, while expanding access to secure and affordable digital connectivity.

H.E. Teresa Ribera, European Commission Executive Vice-President for a Clean, Just and Competitive Transition, remarked: “RISED Ethiopia is a Global Gateway flagship initiative that supports the clean energy and digital transitions in Ethiopia by making the power grid stronger,   smarter and greener. It addresses core challenges at the heart of Ethiopia's energy system. From post- conflict rehabilitation to the modernisation and digitalisation of the grid, this initiative aims to bolster energy security and energy efficiency and facilitate the integration of renewable energy sources.”

RISED is co-funded by the European Union, Agence Française de Développement (AFD), and Ethiopian Electric Power (EEP). Other Team Europe partners are considering additional contributions. It is implemented by EEP in partnership with the Ministry of Finance of Ethiopia.

H.E. Semereta Sewasew, State Minister of Finance for Economic Cooperation, emphasises the importance of the initiative: “RISED is a timely and strategic investment in Ethiopia’s future. It strengthens our national energy grid, enhances digital access, and supports our climate goals. We value this partnership with the EU and France (through AFD), which directly contributes to our economic reform agenda and inclusive development path.”

The programme responds to Ethiopia’s urgent need to modernise its ageing grid infrastructure, reduce energy losses, and expand broadband connectivity. Ethiopia’s electricity sector faces significant challenges, including high transmission losses, poor service quality, and limited access in underserved areas. RISED directly addresses these issues through a comprehensive and sustainable approach.

A Partnership Based on Ownership and Results

RISED is implemented through a strategic partnership with Ethiopian Electric Power, supported by peer-to-peer cooperation with EU-based energy institutions. The financing model combines loans, grants, and technical assistance to ensure sustainability and long-term performance.

Sandra Kassab, Africa Director of AFD, emphasises the importance of this collaboration: “Building on decades of fruitful cooperation, this project reflects the strength of Team Europe working in close partnership with Ethiopia. By combining concessional finance, technical expertise, and local ownership, we are supporting a modern, reliable, resilient energy system that meets the needs of a growing, dynamic population.”

The programme prioritises environmental and social safeguards, digital resilience, and the mobilisation of private sector investment.

Background:

RISED focuses on four priority areas:

• Grid Modernisation & Rehabilitation: Rehabilitate and automate power substations Digitalisation: Extend the optical fibre network for smart grid monitoring and mobile broadband expansion
• Renewable Energy Generation: Partially rehabilitate the Ashegoda Wind Farm (90 MW) and support new private-led IPPs
• Capacity Strengthening: Train and coach over 1,500 EEP staff, with a focus on gender sensitive organisational development

Expected Impact:

By 2030, RISED is expected to deliver:

• Improved electricity access for 4 million people
• New mobile broadband connectivity for 12 million people 150,000 tonnes of CO₂ emissions avoided annualy
• 16 GWh of energy savings per year
• A 50% reduction in power outage frequency and duration