News Updates
Mapping of ongoing programmes and projects
Donors interventions:
USAID/POWER AFRICA
- Support for the Eastern Africa Power Pool (EAPP) in the development of common codes for the regional network, tracking interconnecting transmission lines, training for EAPP and member countries to operate the regional power system
- Via NARUC: assisting GoE to develop a wheeling agreement and tariff methodology that will serve as a model for other cross-border transactions on the continent
- Employing an expert to perform tariff benchmark studies for solar, wind, and hydropower generation for the national utility company
- Assisting the GoE in the competitive tendering of three solar IPPs (100 MW each) by helping to develop the Requests for Purchase (RFPs), the PPAs, and CA
- Via USEA: Organized a five-day leadership training course for seven to ten mid- and senior-level EEU management personnel. The training will focus on management techniques to deliver greater efficiency, effectiveness, and personal authority
- Via USTDA: working with Ethiopian Electric Power to strengthen its procurement systems.
AFRICAN DEVELOPMENT BANK GROUP
- Ethiopia Kenya power interconnection electricty highway project
- Mekelle - Dallol and Smera - Afdera power transmission project
- Addis Ababa transmission and distribution rehabilitation and upgrading project
WORLD BANK GROUP
- Supporting Ethiopia’s energy development strategy in the governments Growth and Transformation Program (GTP) through a wide range of technical assistance
- $200 million International Development Association (IDA)* loan to improve the reliability of the electricity network and services in Ethiopia
- Energy Access Project: establish a sustainable program for expanding the population's access to electricity and improving the quality and adequacy of electricity supply
- Ethiopia Electricity Access Rural Expansion Project: a grant to increasing access to electricity for up to 228,571 poor households in rural towns and villages with grid access.
- $375 million IDA credit to the GoE for the National Electrification Program
- Ethiopia Geothermal Sector Development Project: $218.5m project to support development of geothermal sector
- ELEAP includes $15m for piloting of off-grid solar and mini-grid models in late 2018
- IFC supporting retail activation, consumer awareness, and quality and standards development as well as B2B matchmaking for off-grid solar industry
- IFC Scaling Solar
EU
- Support to Energizing Development in Ethiopia program to fund existing activities with an additional budget of 10.35 million euros
- Support to MoWIE on establishing private and public-sector interventions in deep rural areas
EnDev
- Energizing Development Partnership – EnDev 2 (01/2010 – 12/2020)
Mapping of ongoing projects across the power spectrum33
Although Ethiopia has focus its renewable energy capacity has been primarily in large hydro generation, several projects are under development. Some projects are in the stage of pre-feasibility and feasibility studies, and others are in the funding stage. During the 2018 AEMP event, the Ministry of Water, Irrigation, and Electricity identified the following priority projects moving forward :
USAID/POWER AFRICA
- Genale 6 - Government run project – 246MW - To be tendered as IPP - to be Commissioned
- Sor Hydro – Private Project - 50MW - To be tendered as IPP
- Upper Dabus – Private Project- 326MW
- Birbir - Private Project- 467MW
- Werabesa + Halele - Private Project 436MW – (Signed PPA TS) – to be commissionedYeda 1 + Yeda 2 - Private 280MW - To be tendered as IPP to be commissioned.
- Genale 5 -Private MW – to be commissioned
- Tams -Private 1700MW - to be commissioned
- Wabi Shebele - Private 87MW
- Lower Didessa - Private 550MW - to be commissionedTekeze II – Private - 450MW - to be commissionedLower Dabus - Private – 250MW to be commissioned
- Gojeb - Private – 150MW - To be tendered as IPP
Geothermal Power Projects:
- Corbetti - Private 1000MW - PPA MoU signed – to be commissioned
Tulu Moye & Abaya - Private 400MW - to be commissionedWind Power Projects:
- Ayesha I - Private – 120MW to be commissioned
- Ayisha II - Government – 180MW – to be commissioned
- Debrebirihan - Private – 100MW - To be tendered as IPP to be commissioned
- Adama III - Private – 150MW to be commissioned
Asela - EPC+F 100MW - To be tendered as IPP to be commissionedSolar Power Projects:
- Metehara - Identified 100MW -Procurement, letter of intent signed by EEP
- Humera - Private – 100MW - Tender process 2019
- IFC Scaling Solar Solar - Private 250MW - Tender Process 2019
- Mekele - Private 100MW - Tender process 2019.
32African Development Bank – AEMP Ethiopia Orientation Paper
33GoE Presentation AEMP 2018
34GoE Presentation AEMP 2018
Investment opportunities for the private sector
Ethiopia cannot alone realize energy and overall infrastructural development. The private sector plays a paramount role in providing the capital, skill, knowledge and experience for transforming the economy. According to the World Bank report, in 2017 fiscal year Ethiopia's economy had grown by 10.3 percent. But due to forex shortage and other related challenges, in 2018 the rate had experienced a lapse to 9.7 percent. Many investors have been complaining about foreign currency constraints. There is the need on the part of the government to introduce incentives and do encouragements to further promote investment and attract more investors. A stabilized political situation is required for investors to invest their capital. Regarding this, Ethiopia has been taken as the symbol of peace and stability in the highly volatile East African region. However, in recent times, political unrest had broken out especially in Oromia and Amhara states. The inexpensive labor force is an opportunity to incentivize investors from around the world. This would open ample opportunities for Ethiopia to turn itself into the manufacturing hub of Africa. The government recognizes the important role of private sector investment in expanding renewable energy penetration. The main drivers of sustained growth are expected to be both public and private investments in infrastructure, opening up significant opportunities for the energy and electricity sectors.
Priority projects highlighted by the government during the Africa Energy Market Place 2018
Table 13 - GoE AEMP 2018 priority projects I35:
Table 14 - GoE AEMP 2018 priority projects II36:
Sample sources of concessional funding
- African Development Bank financing solutions: https://www.afdb.org/en/projects-and-operations/financial-products/
- A list of available sources are available here: https://www.get-invest.eu/funding-database/?_search=1
- Africa Renewable Energy Fund (AREF): https://www.gogla.org/africa-renewable-energy-fund-aref
- Africa Power Platform: http://www.africanpowerplatform.org/financing/grants.html
- Seed Capital Assistance Facility (SCAF): https://www.scaf-energy.org/
- Energy access Africa: https://energyaccess-africa.com/2016/10/10/funds-available-for-energy-access-companies-and-projects-in-africa/
- Energy Africa Infrastructure Fund: https://energyaccess-africa.com/2016/10/10/funds-available-for-energy-access-companies-and-projects-in-africa/
- IRENA/ ADFD: https://www.irena.org/ADFD/Project-Facility/Funding-Offer
35GE AEMP 2018 presentation
36GoE AEMP 2018 presentation
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