ADDIS ABABA – Chinese power technology companies have joined Ethiopia’s effort to manufacture energy equipment domestically, as the government moves to reduce import dependence and strengthen local production in the electricity sector.

The Ministry of Innovation and Technology said the initiative is being implemented in partnership with China Southern Power Grid Technology and EDAN Power Group, marking a shift toward technology localisation and homegrown energy solutions.

Officials said the collaboration is intended to enable the domestic production of modern power systems, support technology transfer and build local technical capacity as electricity demand continues to rise.

Speaking at the launch event, State Minister of Innovation and Technology Baysa Bedada said reliable electricity is central to national development and remains a foundation for Ethiopia’s digital transformation ambitions.

He said dependable power infrastructure is essential for achieving long-term economic and technological goals, adding that the partnership with the Chinese firms represents a strategic step toward strengthening energy sovereignty.

Baysa said meeting the country’s growing power demand will require a combination of renewable energy sources, decentralised mini-grid systems and continued expansion of the national grid, particularly to support businesses operating outside major cities.

EDAN Electro Power Group chief executive Endris Adem said the agreement would enhance national energy security by accelerating technology transfer, expanding renewable energy deployment and advancing digitalisation across the sector.

He said the partnership aligns with the National Electrification Program and the Digital Ethiopia 2030 strategy, focusing on joint investment, infrastructure development and domestic manufacturing.

Zhao Ziyi, secretary of the board of directors of China Southern Power Grid Technology, said the cooperation would allow advanced Chinese power technologies to be adapted to Ethiopia’s local conditions and development priorities.

He said the companies plan to collaborate on modern grid systems and advanced energy storage technologies aimed at addressing both current supply gaps and future demand growth.

“This partnership strengthens cooperation across the full energy value chain,” Zhao said.

The initiative also places emphasis on sustainability and skills development, with training programmes designed to build long-term local expertise. 

Government officials said Ethiopia will provide policy and institutional support to encourage collaboration between domestic and international firms and to ensure effective technology transfer to strengthen the country’s energy manufacturing base.