The study focuses on the cost-effectiveness analysis of power distribution equipment systems in Ethiopia, addressing the critical need for efficient and sustainable energy infrastructure. A mixed-method approach combining statistical modelling with empirical analysis was employed. Panel data from various regions in Ethiopia were collected over a five-year period (-). A Generalized Method of Moments (GMM) regression model was used to estimate the cost-effectiveness, accounting for potential endogeneity issues. The estimated GMM coefficients indicate that investment in modern power distribution systems significantly reduces operational costs by approximately 15% compared to traditional methods. This reduction is particularly pronounced in rural areas where infrastructure is less developed. This study provides robust evidence on the cost-effectiveness of different power distribution equipment models, offering a new framework for policymakers and investors in Ethiopia's energy sector. Based on the findings, it is recommended that government bodies prioritise investments in advanced technology to ensure long-term sustainability and efficiency in power distribution systems across all regions. The maintenance outcome was modelled as $Y_{it}=\beta_0+\beta_1X_{it}+u_i+\varepsilon_{it}$, with robustness checked using heteroskedasticity-consistent errors.