Biomass resources include wood, agro-industrial residue, municipal waste and bio fuels. Wood and agricultural as well as livestock residue are used beyond sustainable yield with negative environmental impacts.
According to estimates made by a recent study, at the national level, there appears to be a surplus of woody biomass supply. However, the same study revealed that there is a severe deficit of supply when the data is disaggregated to lower local levels. According to this same study, 307 Woredas (districts) out of the total number of 500 Woredas are consuming woody biomass in excess of sustainable yield.
Ethiopia’s biomass energy resource potential is considerable. According to estimates by Woody Biomass Inventory and Strategic Planning Project (WBISPP), national woody biomass stock was 1,149 million tons with annual yield of 50 million tons in the year 2000. These figures exclude biomass fuels such as branches/leaves/twigs (BLT), dead wood and homestead tree yields. Owing to rapidly growing population, however, the nation’s limited biomass energy resource is believed to have been depleting at an increasingly faster rate. Regarding the regional distribution of biomass energy resources, the northern highlands and eastern lowlands have lower woody biomass cover. The spatial distribution of the "deficit" indicated that areas with severe woody biomass deficit are located in eastern Tigray, East and West Harerghe, East Shewa and East Wellega Zones of Oromiya and Jigjiga Zone of Somali Region. Most of Amhara Region has a moderate deficit but a small number of Woredas along the crest of the Eastern Escarpment have a severe deficit[12].
There is however an energy production potential from agro-processing industries (processing sugar cane bagasse, cotton stalk, coffee hull and oil seed shells)[9]. Up to date, no grid-connected biomass power plants exist. Several sugar factories have however been using sugar cane bagasse for station supply since the 1950s. A total of 30 MW of capacity surplus could be fed in the grid by sugar factories[21]. Municipal waste and bio fuels on the other hand are barely used as energy resources. No estimation of municipal waste power production potential is available at the time, power production potential of landfill gas is estimated to be 24 MW [9]. The current GTP plans to disseminate 25,000 domestic biogas plants, 10,000 vegetable oil stoves and 9.4 million improved stoves by 2015[19][8].
Various energy sector studies conducted in the mid 1980s identified the rising cost of domestic energy supplies on household consumers, unsustainable consumption of fuel wood, increasing deforestation and soil erosion as major environmental and economic problems facing Ethiopia. Demand side management was one among various strategies adopted by the Government of Ethiopia to address the issue and was aimed at reducing households demand for biomass and hence relieving the pressure on the remaining woody biomass resources. This was done through the Ethiopian improved stoves programme, whose objective was to reduce cost and improve the supply of household (biomass) fuels for domestic consumers.
Ethiopia has good wind resources with velocities ranging from 7 to 9 m/s[22]. Its wind energy potential is estimated to be 10,000 MW[21] (see fig. 8). The Ethiopian National Meteorological Services Agency (NMSA) began work on wind data collection in 1971 using some 39 recording stations located in selected locations. Ever since the establishment of these stations, wind velocity is measured and data made available to consumers. However, the number of stations established, quality of data (in terms of comprehensiveness) and the distribution of the stations leaves much to be desired.
On the basis of data obtained from existing wind measurement stations two important conclusions can be drawn:
- First and foremost, Ethiopia’s wind energy potential is considerable.
- Secondly, wind energy is highly variable over the terrain mainly as a function of topography of the country. Pockets of areas with high wind velocities of up to 10 m/s are distributed throughout the Eastern half of the country, including the western escarpment of the Rift Valley.
Seasonal and daily variation in wind velocity is also considerable; wind velocity is higher between early morning and mid-day and in terms of seasonal variation, in the highland plateau zone there are two peak seasons – March to May and September to November; and in the eastern lowlands wind velocity reaches its maximum between May and August. In most of these places, maximum wind velocities are 3 to 4 times greater than the minimum. Medium to high wind speed of 3.5 to 6 m/s exists in most Eastern parts and central Rift Valley areas of the country. Perhaps due to their mountainous terrain and land use/land-cover type, most western and north-western parts of the country have generally low wind velocity (see fig. 8)[12].
Up till now, no commercial wind energy power plants exist, nevertheless EEPCo is planning to develop seven wind sites that are in close proximity to the ICS by 2015, ranging between 50 and 300 MW. In sum, the installed wind power capacity would be approximately 720 MW [23]. Wind energy is considered a promising complementation to hydropower, since the two resources unfold their potential anti-cyclic: in rainy seasons the hydropower potential is high whereas low winds prevail. Vice versa hydropower potential is low in the dry season whereas the wind potential is high (see fig. 9). Unlike large hydropower plants, wind energy plants do not have any negative environmental impacts[22][8]. More about the planned wind farm can be seen here.
- For information on challenges and issues affecting the exploitation of wind energy in Ethiopia, click here.
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Fig. 9: Wind production complementary to hydropower Ethiopia
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Fig. 8: Annual Mean Wind Ethiopia
Geothermal Energy
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Ethiopia’s geothermal resources are estimated to be 5 GW of which 700 MW are suitable for electric power generation[9][21]. Geothermal resources are primarily located in the Rift Valley area, where temperatures of 50 – 300°C prevail in a depth of 1,300 – 2,500 m. Only one 7.3 MW geothermal power plant has been commissioned so far, which started operating in 1998/1999 but was shut down due to lacking technical maintenance in 2002 [24][9][21]. Operation was taken up again, but only at a much reduced generation rate. Exploration of geothermal resources is still ongoing[8].
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Recommendations for Renewable Sector
In looking at the possible future uses of these sources, three potential types of applications can be considered: in conventional rural electrification; in complementary rural electrification; and in the provision of non-electrical energy. One of the most important weaknesses in the work carried out to date is an almost complete lack of analysis of the economic viability of renewable energy applications and their competitiveness relative to their conventional alternatives. Nor has there been any significant amount of investigation into whether potential markets exist for the technologies or how such markets might be developed. Hence it is very important to consider facilitating for proper and sustained mechanisms for data collection, analysis and knowledge management to establish the feasibility and market potentials of different RE applications.
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Fossil Fuels
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Ethiopia is not an oil producing country as yet. Nevertheless, prospecting and exploration studies conducted since 1960s indicate that there are proven reserves of oil and gas that can be exploited at a commercial scale. The energy resource potential of the country includes several hundred million tons of coal and oil shale, and over 70 billion cubic meters of natural gas[12].More fossil fuels prospecting and exploration studies are currently underway by certain international petroleum companies in some parts of the country.
Based on study findings thus far, the eastern lowlands of Ogaden desert, has the highest potential for oil and natural gas development in Ethiopia. These included Kalub gas and Hilala oil fields. In fact, currently, development and infrastructural works are thoroughly underway in some of these fields, heralding the-much-awaited-news that Ethiopia’s long dream of exploiting some of its fossil fuel resources is going to become a ‘reality’ sooner than later.
Extreme west of the country, more specifically the Gambella region, is another area where potential for fossil fuel reserves are often said to be significant. Unlike the Ogaden region where exploration started some four decades ago, the Gambella region is a more recent entry (less tan 10 years) to the list of potential sites to be studied in detail. The official stand of the government and the exploration companies regarding the outcomes of their exploration works is that the wells that have been dug up thus far turned out to be dry. However, despite some political disturbances that persisted in the area; and causing several hick-ups to the initiative, the exploration work has continued in localities adjacent to the Sudanese border. For issues and chalenges affecting the fossil fuel sector in Ethiopia click here.
Electricity Sector
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Fig. 2: Development Energy Generation EEPCo and Share by Fuel
According to the
Ethiopian Electric Power Corporation (EEPCo), Ethiopia’s total electricity generation in 2010 was 3,981.07
GWh. Although hydropower contributes only 0.9% to the total energy supply, it generates 88% of electricity and is thus the country’s dominating electricity resource, followed by Diesel (11%) and geothermal (1%) electricity generation (see fig. 2). In the ICS (interconnected system)
EEPCo currently operates
11, primarily large, hydropower-, one geothermal- and 15 diesel grid-connected power plants with a total capacity of 1842.6 MW, 7.3 MW and 172.3 MW respectively. Another three hydropower- and several diesel off-grid power plants with a capacity of 6.15 MW and 31.34 MW respectively operate as
self-contained systems (SCS). The ICS is expanding whereas the
SCS is shrinking due to the interconnection of previously
SCS served towns to the ICS. As of July 2010, a total of 5163 towns and villages and a total of 1,896,265 customers were connected to the ICS and
SCS by
EEPCo (see fig. 3).
System losses are calculated to be 23%. This figure represents both technical and non-technical losses and the major share is attributable to the distribution network poor design.
Approx. 87% of costumers are domestic consuming roughly 40% of the electricity, 12% commercial and 1.1% industrial whereas only 0.1% is used for street lightning[25]. Average consumption per connected household is rather low (kWh/a 747) or roughly 50 kWh/year per capita compared to 510 kWh for Subsaharan Africa, leaving a lot of potential for further growth by deepening the current network and by increasing the level of power consumption.
EEPCo charges a connection fee of at least 500
ETB (36,6 €). The fee can go up to 100 US$. The amount is sometimes
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Fig. 3: EEPCo Customers Ethiopia.jpg
recovered through the customer’s bill over a 24 month or an even longer period. The fee includes wiring to the house and the
instalation of an electric meter. It is assumed that poor household have difficulties to pay the connection costs, so that a lot of them are not connected to the grid in electrified villages. The tariffs for electricity depend on the energy consumption. Customers with a monthly consumption up to 50 kWh pay a flat rate of 0,273
ETB per month (0,02 €) plus a service charge of either 1,4
ETB/month (0,10 €) for 0-25 kWh or 3,4
ETB/month (0,24 €) for 26-50 kWh). As such, the average estimated monthly electricity bill is expected to be in the order of
ETB 7 - 16 per month (0,51 – 1,17 €). This represents less than two percent of average monthly expenditure of an average rural household, as the price paid by those households to buy kerosene for lighting is much higher than the relevant
EEPCo tariff. It is estimated that a rural household
spents around 1,6 US$ per month for kerosene. Consequently, the risk is low that household cannot pay the bill and are disconnected once they are electrified through grid densification.
In 2005 EEPCo launched the Universal Electrification Access Program (UEAP), with the goal to connect a total of 6878 towns and villages to the grid and to increase the energy generation capability to 6386 GWh by 2010. Although the aspired target was not fully met, electricity generation increased 53% from 2,587.2 GWh in 2005 to 3,981.07 GWh in 2010[24][25]. However, the production increase does not keep pace with the grid extension activities. Transmission lines increased from a total length of 8,003.93 km in 2006 to 10,884.24 km in 2010, distribution lines’ total length even quadrupled from 33,000 km in 2005 to 126,038 km in 2010 (see fig.4)[8].
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Fig. 4: Distribution lines Power Generation ET.jpg
Although electricity generation is steadily increasing this creates a bias between the grid extension and the load of power generated, which results in a shortage of electricity and thus frequent power cuts. Furthermore, transmission and distribution losses of the ICS are high: 20% were lost in the period between 2001 and 2005. Most of the loss happens during distribution from the national grid to end users. Due to the hence limited electricity service, people’s willingness to pay might decrease significantly and makes more reliable power supply in isolated systems more attractive
[25][11][9].
The current 5-year Growth and Transformation Plan (GTP), launched in 2010 and running until 2015, targets to increase Ethiopia’s total generating capacity to 8,000 to 10,000 MW by 2015[26]. This would quadruple or even quintuple the country’s current capacity of approximately 2000 MW. To this effect, the plan includes the installation of 8 large hydropower schemes (8737 MW total capacity), 7 wind plants (866 MW total capacity) and a 70 MW geothermal power plant[17]. The number of connected costumers is planned to be more than doubled: the target is to connect 4 million costumers by 2015[26]. This would represent an increase of the general access rate from 41% to 75% based on the ratio of the total households in electrified towns and villages to the total households in the country . Moreover the plan includes further development of the renewable energy sector[8].
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Key Cross-cutting Issues in the Energy Sector
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There are number of key cross-cutting issues in the Ethiopian energy sector. The most fundamental among these are[27]:
- Environment: Ethiopia’s national energy balance is dominated by traditional (biomass) fuels. The fact that the majority of biomass supplies are coming from an unsustainable resource base coupled with the use of very low efficiency household cooking appliances poses serious environmental concerns.
- In-door Air Pollution (IAP): Domestic cooking appliances in use in rural Ethiopia are not only inefficient but also produce large quantities of smoke due to incomplete combustion. In rural areas, where cooking places are poorly ventilated, this smoke is the main cause of IAP, which is a serious health problem among women and children.
- Gender: Women are not only energy users, but also major suppliers of traditional fuels in Ethiopia. More than two-thirds of traditional fuels are supplied by poor urban and rural women in Addis. Therefore, all interventions in the energy sector need to pay attention to the gender aspects as well.
- Sustainable Livelihoods: Traditional fuels sector, though extremely vulnerable, is a major employer, only next to agriculture, in Ethiopia. Recently, there are indications that jobs are being lost due to fuel-switching. Therefore, while fuel-switching should continue for environmental reasons, the issue of loss of sustainable livelihoods by traditional fuels suppliers should not be ignored.
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Policy Framework, Laws and Regulations
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The government’s declared aim is a huge expansion of the infrastructure in the energy sector. Based on the national Universal Electricity Access Program (UEAP) the Goverment owned utility "EEPCo" has started to extend the national electricity grid to towns and villages preferably with minimum of 5000 households. Villages and towns with less households are often only considered for grid extension if the central or provincial governments cover the costs. The grid extension is carried out by the construction of 33 kV transmission lines. Local departments of EEPCo are in charge of the grid connection and operation within the towns and villages. The costs for the UEAP are estimated at one billion US$. Twenty percent of that sum will be financed by EEPCo via credits, another 80% by the government or international donors. The high contribution of the government is due to the fact that the extension of the grid to villages with less than 5,000 inhabitants is economically not feasible for EEPCo. The first two years of the program are partly financed by World Bank, which covers about US$ 100 Mio of the initial US$ 180 Mio budget.
Once a town is having access to the grid, the connection of households, social institutions and enterprises is within their own responsibility. The connection of the individual customers to the grid is generally not subsidized and 100% covered by the respective customer. The connection fee ranges from US$50 to US$100 (average 75 US$) including the cost for the electricity meter. There are different figures about the share of households connected to the grid. In some documents a rate of 30-40% is mentioned. Another document from the World Bank says that up to 70% are reached due to instalment payment of the connection fee. The connection rate may drop if EEPCo will try to meet the ambitious political goal of 50% coverage via fast rollout to many villages without taking to much care of household connections.
The current average electricity tariff is about US$0.056 (0,04 €) per kWh, equivalent to about 62% of the long-run marginal cost of supply. Thus, the current electricity tariffs are not cost covering.
The improvement of efficiency of the existing energy resources is another target. The energy loss is to be reduced from 20% (2005) to the international average, 13%, during the same period of time. In the last years, the government tried to pave the way for more private investors to generate electricity and feed it into the grid. Proclamation 37/1997 opens domestic investors the possibility to invest in plant capacities of up to 25MW. Only foreign organisations are permitted to invest in power stations with a capacity of over 25 MW. Council of Ministers Regulations No. 7/1996 and No. 36/1998 introduced additional tax relief and improved import regulations as incentives for private investment. Nonetheless, the electricity sector is still controlled by the state.
In November 2013 the Ethiopian parlament approved the Energy Proclamation to liberize the energy sector. An Ethiopian Energy Athority (EEA) will be founded, where foreign companies can register and obtain licences to produce electricity and get a fixed feed-in tariff for the generated power. The feed-in tariffs will be fixed by the board of directors of EEA and approved by the Ministry of Energy.
EEPCo presented end of 2013 a new energy masterplan for the next 25 years. 28 projects with total investments of 156 billion USD shall be realized by 2038 assuming an electricity demand of 37.000 kW. By 2016 EEPCo plans to increase the power production by 2000 MW to 10000 MW.Also the transmission and distribution grid shall be extended significantly. It is planned to install 13.560 km of 250kV lines with 114 transformer stations and 9.257 km of 400kV line with 41 transformer stations by 2020.
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Policy and Strategy
Following are some of the major highlights from the policies and strategies of the country.
Energy Development
- Fuel wood plantation: encouragement of the private sector and different communities to be involved in plantation schemes,
- Conversion of biomass in different forms of energy purposes: enhancing conversion efficiency in charcoal making, encourage and promote the modern use of agricultural residues and dung (Biogas etc.),
- Hydro power development: utilization of the vast hydropower potentials (of which only about 2 % is currently utilized),
- Other Energy sources: the policy states that whenever the economic potential is realized geothermal, coal, solar, wind and other sources of energy shall be used to generate electricity or other energy services,
- Oil exploration and development of the natural gas potential.
Energy Conservation and Efficiency
- Improving the energy efficiency in the transport sector, the agriculture sector, the industry and at household level is to be enhanced,
- Regarding the household sector, enhancing the supply of fuel wood, encouraging fuel wood substitution and taking other measures to narrow the gap between energy demand and supply, such as the promotion of fuel efficient stoves.
Encouragement of Private Sector to be Involved in Energy Sector
The Energy policy also dedicates a special section for the encouragement of the private sector to be involved in the development of the Energy resources of the country specially by being involved in the construction of energy structures, a field that has been and still is seen to be mainly the responsibility of the government.
Environmental Policy of Ethiopia
The policies are:
- To adopt an inter-sectoral process of planning and development which integrates energy development with energy conservation, environmental protection and sustainable utilization of renewable resources,
- To promote the development of renewable energy sources and reduce the use of fossil energy resources both for ensuring sustainability and for protecting the environment, as well as for their continuation into the future.
Forest, Woodland and Tree Resources
The policies are:
- To ensure that forestry development strategies integrate the development, management and conservation of forest resources with those of land and water resources, energy resources, ecosystems and genetic resources, as well as with crop and livestock production,
- To find substitutes for construction and fuel wood whenever capabilities and other conditions allow, in order to reduce pressure on forests.
Conservation Strategy of Ethiopia
- Boost technical and social research on the design of improved cooking stoves,
- Promote local manufacture and distribution of improved charcoal and biomass stoves,and
- Locate, develop, adopt or adapt energy sources and technologies to replace biomass fuels.
Development of Alternative Energy Resources and their utilization are to: Acquire, develop, test and disseminate appropriate and improved energy use technologies (e.g. improved stoves, charcoal kilns, solar powered cookers and heaters).
Capacity Building and Institutional Strengthening are to:
- Strengthen research, planning and project implementation capability of the federal and regional energy agencies,
- Establish a centre for testing alternative and efficient energy sources, technologies and appliances,
- Promote and assist the private sector to assemble and manufacture energy development facilities and end-use appliances.
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Institutional Set-up in the Energy Sector, Activities of Other Donors
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Until a change of government in 1991, there were neither energy sector policies nor institutional arrangements that separated policy making organs from those of operations. Ever since the mid 1990s, in a bid to enhance efficiency and harmonize operations in the energy sector, policy making organs were separated from operation organs[28].
At the Federal Government level, there exists a number of institutions involved in the energy sector in the Country. The Ministry of Mines and Energy (MoME) is responsible for the overall development of the energy sector in the country. For matters relating to rural electrification the Ministry of Rural Development also has a role to play. The Ministry of Water Resources is responsible for the protection and utilisation of the nation’s water resources.
The MoME has six main agencies and departments that deal with energy issues:
- Ethiopian Rural Energy Development and Promotion Centre (EREDPC) – with the mandate to carry out national energy resources studies, data collection and analysis, rural energy policy formulation, technology research and development and to promote appropriate renewable energy technologies in rural areas; the Centre also serves as the Executive arm of the Rural Electrification Fund (REF).
- To assess and implement projects under the REF the EREDPC has established a core team as the Rural Electrification Executive Secretariat REES. The REES being responsible for project appraisal shall also provide advisory services, capacity building, and training to Regional Energy Bureaus and cooperatives.
- Rural Electrification Fund (REF) - to enable the private and cooperative engagement in rural electrification activities through loan based finance and technical support. Among other REF shall also prepare an off-grid rural electrification master plan which shall be updated annually and conduct feasibility studies to identify suitable RE projects, which will be implemented by the private sector (which includes NGOs, CBOs, co-operatives, municipalities/local governments and other entities).The REF received US$ 15 million in funding from the World Bank and GEF under the Energy Access Program. This allowed the granting of loans and the promotion of energy projects in rural areas in collaboration with private actors and local authorities. In formal terms it is administered by the Rural Electrification Board (REB) and the Rural Electrification Executive Secretariat (REES). The REB determines the criteria for project promotion and coordinates cooperation with other programmes. The Board also decides on whether to proceed with the submitted project proposals. The REB’s members are employees of the Ministry of Water Resources, the Ministry of Mines and Energy, the EEA and the EREDPC and representatives of the private sector. The resources available to the REF are used to subsidise 85 % of the cost of rural electrification projects. Renewable energy sources are entitled to a higher subsidy of 95 %. Most of the projects that receive assistance, however, are based on electricity generation with diesel generators.
- Energy and Regulation Department – to formulate energy policies, energy regulations, and monitoring of implementations of these;
- Petroleum Operation Department – for petroleum exploration and development, licensing, and project coordination;
- Ethiopian Electricity Agency (EEA) – to regulate the electricity generation, transmission, distribution and sale of electricity. The EEA is responsible for setting the tariffs and regulating and supervising access by private operators to the electricity grid, which includes the approval of power purchase agreements (PPAs). EEA controls quality, standards of electricity, licensing of electricity operators and contractors including tariff settings. It is also responsible for organising programmes in the field of rural electrification and establishing the framework conditions for private investors. On account of structural shortcomings and a lack of personnel, however, the EEA is not yet in a position to perform these tasks to the full.
MoME is working closely with two public enterprises: the Ethiopia Electric Power Corporation (EEPCo) for the electricity sub-sector, and the Ethiopian Petroleum Enterprise (EPE) for the petroleum sub-sector. EPE is an operational wing of government entrusted with the responsibility of exclusively importing petroleum products in to the country. The petroleum products market, with the exception of LPG, is still regulated in Ethiopia and importation is the monopoly of EPE[29]. EEPCo is mandated to generate, transmit, distribute, and sell electricity. The corporation disseminates electricity through two different power supply systems: the Interconnected System (ICS) and the Self-Contained System (SCS). The ICS, which is largely generated by hydropower plants, is the major source of electric power generation. The SCS is mainly based on diesel generators and to a minor portion on small and medium hydropower plants. EEPCo’s financial situation is considered to be weak. In 2006, electricity tariffs were increased by 22 percent across the board, except for the life-line tariff (consumption up to 50kWh/month) which remained unchanged. The weighted average tariff is estimated at 0.06US$/kWh. The overall billing collection rate at present is estimated at around 98 percent. Electricity revenue increased to US$150 million. Operating profit after depreciation was US$35.2 million. Operating profit per kWh sales to end-use customers was at 0.014US$/kWh. According to the World Bank,11 EEPCo has a strong technical and stable management team, and is operating profitably with an internal cash generation of about US$50 million per year. Its operating costs are low since generation is predominantly hydro, which also reduces exposure to oil price volatility.
Based on the decision of the parlament in November 2013 it is planned to restructure EEPCo into two companies: a) the Ethiopian Electric Service (EES) and the Ethiopian Electric Power (EEP). aufgespalten. EES shall be managed for two years by the Indian company Power Grid Corporation.
Further operation and implementation organs are[30]:
- Ministry of Trade and Industry (MoTI): The MoTI sets retail prices and regulates the distribution of petroleum products by oil distribution companies.
- National Strategic Petroleum Reserve Administration: This is an arm of government that manages and administers strategic reserve depots located throughout the country to ensure sustained supply at times of sudden shocks.
At a regional level, energy activities are mainly supported by regional energy bureaus, which are part of regional governments, and by regional energy institutions, such as the Oromia Mines & Energy Agency and the Regional Rural Electrification Executive Secretariat Offices with support and advice from the EREDPC. There are only few private companies active in the energy sector.
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Activities of Other Donors
World Bank
For years the World Bank was the main international donor in the energy sector working closely with GoE and EEPCo to rationalize the power sector investment program, and to assist in the funding of new projects. Currently the World Bank is financing several programmes under the titles: Energy Access and Electricity Access (Rural) Expansion. The programmes are mainly financed through loans of several hundred million US $ and a GEF grant of 5 Mio US $.
The objective of the Energy Access Project is to establish a sustainable program for expanding the population's access to electricity, and improve the quality of electricity supply. The project components are: 1) support institutional, and capacity building, through the preparation of a long-term power sector strategy, of an indicative rural electrification master plan and of specific studies, to stimulate private sector investments, and, of an integrated rural energy strategy, comprising both the biomass sector, and modern forms of energy. 2) support capacity building for enterprises investing in small-scale renewable energy and, for key agencies, 3) expand, and rehabilitate the urban distribution system, and load dispatch, by promoting investments to improve, and extend services, primarily in Addis Ababa, Nazareth, Dire Dawa, and Bahir Dar. The component finances studies, and feasibility reports, recommending appropriate reinforcement of the telecommunications systems, and energy management systems; 4) support rural electrification, through grid-based electrification connections in rural areas and off-grid systems; 5) plan, and manage activities based on supply and demand, to reduce environmental degradation, and improve biomass energy end-use efficiency; and market improved stoves and , 6) finance the Environmental Management Plan, including capacity building (training and advisory services), and the compensation plan for crop losses. Technical assistance should ensure the safe disposal of transformers containing polychlorinated biphenyls.
The Electricity Access Expansion Project is geared to help expand electricity access to rural populations in Ethiopia.The project aims to bring grid, mini-grid and off-grid electricity access to more than 250 towns and villages and provide such services as lighting for schools and clinics, benefiting a total population of about 1.8 million. It shall help to install public street lighting and also connect 286,000 new or indirect household customers to the grid distribution system. To ensure affordability, poor customers shall be offered 5 year-loans to defray the costs of connection, and shall receive energy efficient bulbs to reduce the monthly payments.
In addition to the grid extension the World Bank programmes also supports:
- The decentralization of EEPCO's accounting system;
- The decentralization of part of EEPCO's billing system;
- Manpower development to support EEPCO's restructuring;
- Construction of the Gilgel Gibe hydroelectric plant;
- Completion of the Woody Biomass inventory in the North of the country;
- Studies including sector restructuring study, a generation expansion study, a tariff study, and a valuation of fixed assets;
On October 30, 2008 the World Bank, acting as administrator for the Global Partnership on Output-Based Aid (GPOBA), signed a grant agreement for US$8 million with EEPCo to support increased access to electricity in rural towns and villages with grid access. Up to 228,571 low-income households will benefit from the scheme. GPOBA will provide a subsidy of US$35 for each new eligible rural household. GPOBA pays the subsidy to EEPCo only after independent verification of pre-agreed “outputs”:
- a working metered connection to a household,
- a five-year loan from EEPCo to help repay the connection cost, and
- two energy- efficient compact fluorescent lamps (CFLs), which will reduce the electricity consumption by 55%.
The loan to be granted by EEPCo will be 80 percent of the estimated cost of connection. Customers will pay a 20 percent upfront fee when applying for the connection. The balance of the loan will be divided into 60 equal monthly installments of US$1. Repayment of the loan will be rolled into the electricity bill. In the absence of reliable means-based poverty tests, all customers would be eligible to receive the loan. However, to provide some form of targeting, it was agreed that the connection with concessional financing would only be available one year after the village had been electrified. The assumption is that customers who could afford to connect would have requested the connection in the first 12 months, before concessional funding was made available. GPOBA is drawing on funds from the UK’s Department for International Development (DFID) and a Multi-Donor Trust Fund funded by the Swedish International Development Cooperation Agency (SIDA) and the Australian Agency for International Development (AusAID). The project became effective in May 2009.
In recent years, after the GoE publicly blamed the World Bank for powershedding and World Banks reluctance to participate in the financing of Gibe III the relations have cooled down considerably. The African Development Bank is still an important partner, not only for generation projects, but as well for the financing of the international interconnectors. China has become a strategic partner of Ethiopia in the energy sector. The extent of Chinese cooperation in the Ethiopian market was underlined not only by the recent signing for Gibe III, but a series of new major contracts for financing hydro plants and substations. Chinese companies led by Sinohydro Corporation are working on a number of hydroelectric power (HEP) projects – successfully challenging the traditional big players in Ethiopia. Chinese firms can offer low prices and financing – with The Export-Import Bank of China (China Eximbank).
Japan
The Government of Japan is willing to develop the geothermal resource base of Ethiopia. The Japan External Trade Organization (JETRO) recently financed a surface survey of Aluto Langano geothermal site which indicated a potential geothermal resource base to support at least 35 MW power plant. The World Bank, the Government of Japan and the Government of Ethiopia will co-finance the appraisal and well testing to determine the level of geothermal resource available at that site. The OFID (OPEC Fund for International Development)agreed to co-finance the Urban Distribution Component to support rehabilitation and access of new consumers in EEPCo system. Italy has supported several hydropower plants and the development of the sector – and their own supplier – with considerable financial packages. France finances grid extension projects. In May 2009 Ethiopia has signed a financing agreement with France amounting to 210 million Euros for the implementation of the Ashegoda Wind Power Project in Tigray State. Coordination with EnDev Activities It has been agreed with the MoME to promote the current and planned joint interventions to the level of national programmes, namely a national Pico to Small Hydropower as well as a national solar energy programme in order to harness the momentum created by the EnDev intervention and utilize the synergy with other interventions. The planned development of a national biomass development strategy is also a similar undertaking.
SREP
Srep is supporting the following activities:
- Development of Aluto Langano Geothermal field
- Assela Wind Farm Project
- Clean Energy SMEs Capacity Building and Investment Facility
In the case of the Clean Energy SMEs Capacity Building and Investment Facility it is intended to support market development for clean, renewable energy-based products and services in the household and commercial segments, by providing targeted capacity building and financing to SMEs selling improved cook stoves, lighting devices, solar home systems, solar water heaters, rooftop solar systems, and modern fuels. The project will also provide commercial financing that allow companies to develop new, professionalize existing and, ultimately, grow businesses. The Project will be divided in two phases: Phase I: Capacity building of market players and Phase II: Financing of Market Players (SMEs).
The following table is giving an overview about main programmes of other donors (correct as of February 2012) [31]:
|
#
|
Project/Initiatives
|
Description
|
Partner
|
|
1
|
Industries Energy Efficiency Program
|
Replacement of energy inefficient technologies
|
WB
|
|
2
|
Energy Efficiency Program
|
Replacement of inefficient electrical bulbs with CFLs.
|
WB
|
|
3
|
Nationwide Wind and Solar Energy Grid Based Master Plan Project
|
Wind and solar resource assessment and preparation of development master plan. The assessment will include a number of pre-feasibility studies
|
Government of China
|
|
4
|
Universal Electricity Access Programme
|
To extend the national electricity grid to supply electricity to rural towns and villages and improve the national electricity access rate in order to promote socioeconomic development of rural areas.
|
WB/AfDB/ BADEA/OPEC FID
|
|
5
|
Energy Access Project
|
In addition to supporting expansion of electricity access through extension of the grid by EEPCo, the project provides energy access to locations remote from the grid by independent suppliers and communities. A further component involved the implementation phase of the Biomass components in increasing fuel wood supply by bringing about 302,000 hectares of natural forests under participatory community management and implementing about 384,000 hectares of agro-forestry schemes. A further sub-component will
provide training in the production of 320.000 efficient cook-stoves. It is also supporting the rehabilitation and reinforcement of the distribution networks in most of the urban areas, including Addis Ababa, in order to improve the quality and reliability of supply.
|
WB/ EIB/ GEF
|
|
6
|
Adama I Wind Power Project
|
Development of 51 MW wind farm at Adama site.
|
China
|
|
7
|
Ashegoda Wind Power Project
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Development of 120 MW wind farm at Ashegoda site
|
AFD
|
|
9
|
Bamboo as sustainable biomass energy: A suitable alternative for firewood and charcoal production in Africa.
|
Increase the use of bamboo as a source of energy thereby providing a more sustainable, environmentally friendly and economical option to firewood and wood charcoal
|
INBAR
|
|
10
|
National Household level Biogas Programme
|
Promote the production of biogas and its use for cooking and lighting in rural and peri-urban areas in 4 regional states in Ethiopia, among livestock rearing households with access to water. Promote the use of the slurry from the digesters as fertilizer in horticulture. Use a comprehensive approach, involving the private sector in construction and maintenance and ensuring proper quality control systems with government backing as well as access to credit
|
SNV
|
|
11
|
Community Managed Renewable Energy Programme
|
The project aims to improve access to essential services including quality health care, education and potable water in rural communities through increased access to solar energy services by promoting the use of Fuel Saving Stoves (FSS), solar power for local schools and health posts and solar powered water pumps.
|
EC /Plan UK
|
|
12
|
Support to Efficient Utilization of Alternative Energy Sources to Improve the Livelihood of Pastoral and Agro pastoral Communities in Southern Ethiopia.
|
To contribute to increase the access to affordable and sustainable energy through increased production, supply and efficient use of renewable energies in order to improve basic social services and livelihood in un-served rural areas of southern Ethiopia
|
EC /COOPI
|
|
13
|
Integrated Approach to Meet Rural Household Energy Needs of Ethiopia
|
To contribute to economic prosperity, social well-being, environmental sustainability and climate change issues (and hence to contribute to MDGs) through increasing the use of RE and EETs solutions for improved access to sustainable and efficient energy in the rural and peri-urban areas
|
EC /HoA – REC/N
|
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BMZ
In the focal areas of bilateral development cooperation in Ethiopia, the following programmes are implemented: Urban Governance and Decentralization Programme (UGDP), Engineering Capacity Building Programme (ECBP), Sustainable Land Management Programme (SLM).
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DGIS
SNV is implementing a National Biogas Programme in Ethiopia in partnership with the Ethiopian Rural Energy Promotion & Development Centre (EREDPC). Implementation started in May 2008 with the construction of 100 demonstration biogas plants in 4 regions (Tigray, Oromia, Southern region and Amhara). In an initial phase (2008-2013), constructing a total of 14.000 biogas plants is targeted.
The Netherlands Embassy (DGIS) temporarily finances the Horn of Africa Regional Environmental Centre (Addis Ababa University initiative) that is involved in stimulating carbon financing in some of its own developed energy projects and as part of a small platform pushing on carbon/CDM problem solving. Other partners of the platform are the Min. M&E, UNDP, EPA, GIZ.
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Further Information
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References
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- ↑ UNDP (2010a): http://hdr.undp.org/en/statistics
- ↑ UNDP (2010b): http://hdrstats.undp.org/en/countries/profiles/ETH.html
- ↑ IEA (2008): http://www.iea.org/country/n_country.asp?COUNTRY_CODE=ET
- ↑ World Bank (2008): http://siteresources.worldbank.org/INTSTATINAFR/Resources/LDB-Africa-12-2-08.pdf
- ↑ Contrary to the 12% mentioned in the cited 2008 Word Bank report, EEPCo (Ethiopian Electric Power Cooperation) uses a figure of 41% current “electric energy access”. EEPCo bases this figure on the number of people within the reach of low-voltage distribution lines, not the actual number of directly connected people.
- ↑ UN Data (2007): http://data.un.org/CountryProfile.aspx?crName=Ethiopia
- ↑ Hathaway, T. (2008): What costs Ethiopia’s Dam Boom? A look inside the Expansion of Ethiopia’s Energy Sector.
- ↑ 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 Meder, K. (2011): Application of Environment Assessment related to GIZ ECO Micro Hydropower Plants in the Sidama zone/Ethiopia (unpublished Diploma thesis).
- ↑ 9.0 9.1 9.2 9.3 9.4 9.5 _
- ↑ Ministerial Conference on Water for Agriculture and Energy in Africa (2008): The Challenges of Climate Change: Hydropower Resource Assessment of Africa.
- ↑ 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 _
- ↑ 12.0 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: II - Energy Resource.
- ↑ EEA (2003): Energy Access Project: Baseline Survey, Monitoring and Evaluation Framework and Hydro Market Development Strategy.
- ↑ 14.0 14.1 EEA (2003): Energy Access Project: Baseline Survey, Monitoring and Evaluation Framework and Hydro Market Development Strategy.
- ↑ 15.0 15.1 Gross, T. et al. (2009): The economic potential of small and micro hydropower projects in Ethiopia: A situation analysis for national and international investors (AMES-E).
- ↑ 16.0 16.1 IED (2006): Off-grid rural electrification master plan study.
- ↑ 17.0 17.1 _
- ↑ GTZ (2009): Target Market Analysis: Ethiopia’s Solar Energy Market.
- ↑ 19.0 19.1 _
- ↑ 20.0 20.1 GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: VII - Best Practice Case Studies.
- ↑ 21.0 21.1 21.2 21.3 _
- ↑ 22.0 22.1 Walelu, K. (2006): EEPCo Wind energy projects in Ethiopia.
- ↑ Walelu, K. et al.(2011): Ethiopia Wind Profile.
- ↑ 24.0 24.1 _
- ↑ 25.0 25.1 25.2 EEPCo (2011): http://www.eepco.gov.et/eepco.php
- ↑ 26.0 26.1 Ministry of Finance and Economic Development (MoFED) (2010): Growth and Transformation Plan (GTP) 2010/11-2014/15
- ↑ GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy.
- ↑ GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy.
- ↑ GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy.
- ↑ GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy.
- ↑ Ministry of Water and Energy (2012) Scaling - Up Renewable Energy Program. Ethiopia Investment Plan
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