Diriba PhD, DawitGizaw, Belayneh2020-07-242023-11-182020-07-242023-11-182020-06http://etd.aau.edu.et/handle/12345678/21968The aim of this study is to explore opportunities and challenges of private sector involvement in electrification program of Ethiopia. Electricity service for basic needs, as well as for economic development in Ethiopia is a practical concern. Hence, Ethiopian Government aimed to reach modern electricity access up to the lower administrative units through its electrification program. To this end, it has become a necessity to involve the private sector. The study pursued through qualitative research methodology approach. Data has been collected through survey questionnaire and key informant interview. The results of the study among others; shows prospect to the private sector involvement in mini-grid and off-grid solar development, support to the off-grid solar development beyond 25 Km away from the utility grid access lines through minimum tender subsidy /MTS/. On the other hand the challenges noted are; the private sector involvement in grid connection is not clearly provided. The policy, legal and institutional framework coordination and accountability in place lack clarity for the private sector investment. The business model for electrification investment is not clearly for seen. The study recommends specific enabling environment like; clear policy, upfront capital subsidy, attractive tariff rate, easy license and permit procedure, and ABC business model placement as a preference to involve private sector investment under the program envision. In a nutshell the study pioneer to take note of the private sector opportunities under the program for investment and enabling environment as a means to withstand the challenges that prohibit the private sector interest to involve under the Electrification Program of Ethiopia.enThesis