Ethiopian Electric Power Turns Profitable With GERD Boost, Posts 7.1 Billion Birr Gain

Ethiopian Electric Power has reported a historic financial turnaround, posting its first-ever profit after years of continuous losses. The state-owned company announced a profit of 7.1 billion Birr for the first half of the current fiscal year, marking a major shift from the loss of more than 10 billion Birr reported just a year earlier.

A key reason behind this strong performance is the Grand Ethiopian Renaissance Dam, which has significantly increased electricity generation in the country. The dam now contributes more than half of Ethiopia’s total power supply. With more turbines becoming operational, the company generated around 18.3 terawatt-hours of electricity within six months, setting a new record.

Higher power generation has also helped Ethiopia expand electricity exports to neighboring countries such as Kenya and Djibouti. These exports have become an important source of foreign currency. In addition, revenue from supplying electricity to international data-mining companies operating in Ethiopia has increased sharply. Earnings from such technology firms rose by 138%, showing the growing importance of this new revenue stream.

Within the country, electricity demand has also grown. Ethiopian Electric Power has been supplying energy to the Ethiopian Electric Utility, major industries, and the national railway network. According to CEO Ashebir Balcha, these results indicate a new phase for the company, where it is moving away from past financial struggles and building a more stable future.

Despite this progress, the company still faces several challenges. Theft of infrastructure has caused serious damage, including the collapse of multiple transmission towers. Ongoing regional conflicts have also delayed some power projects, affecting overall expansion plans.

Looking ahead, Ethiopian Electric Power plans to diversify its energy mix by investing in wind and geothermal power projects. The company is also working to reduce technical losses in its transmission system. It aims to finance nearly 80% of its future budget from its own revenues, reducing dependence on external support.

With strong growth in generation and exports, along with efforts to improve efficiency and expand clean energy sources, Ethiopian Electric Power is positioning itself as a key player in East Africa’s energy sector.