Pipps energy Ethiopia

Does Ethiopia have energy resources?

Ethiopia is rich in energy resources, but its citizens are energy poor and access to energy is a development imperative. The legal and institutional framework to facilitate electricity procurement from independent producers has taken off from a solid foundation and resulted in several ongoing projects.

Why are Ethiopian IPPs So Risky?

At project level, Ethiopian IPPs tend to be larger than many projects in neighbouring countries, which adds risks in areas such as raising project finance. The two geothermal IPP projects, for example, started with a target of 520MW each but were eventually downscaled to 150MW.

What is Ethiopia doing about electricity?

Ethiopia continues to plan and implement a series of projects, including its National Electrification Program 2.0. The Ministry of Water and Energy (MoWE) 2 provides high-level direction and policy on electricity and oversees its governance.

Does Ethiopia have a legal framework to procure electricity from independent producers?

The legal and institutional framework to facilitate electricity procurement from independent producers has taken off from a solid foundation and resulted in several ongoing projects. Since 2018, Ethiopia held two tenders to procure 1,000MW of electricity.

Does Ethiopia use electricity for socioeconomic development?

Use of electricity for socioeconomic development is low. Consequently, Ethiopia’s energy supply is highly dependent on biomass resources, namely firewood and agricultural waste. However, electricity generation capacity has jumped over the past three decades, from 380MW in 1991 to 4,478MW in 2021.

Does Ethiopia have a power system expansion plan?

For instance, the Ethiopian Power System Expansion Master Plan forecasted the share of industry in total domestic (i.e., excluding export) sales of electricity to grow from 36% in 2012 to 50% in 2015, and then decline to 46% in 2037 .