Our planet is undergoing a silent crisis. This crisis is neither a war nor a pandemic, but a slow, insidious change that threatens to unravel the very fabric of our existence. Climate change, once a distant warning, is now a tangible reality, manifesting itself in extreme weather events, rising sea levels, and mass extinctions. The consequences of our actions, like ripples in a pond, are spreading across continents, impacting ecosystems, economies, and the very fabric of human civilization.
From scorching heat waves to devastating floods, from rising sea levels to mass extinctions, the Earth is sending us a clear and urgent message: the time for complacency is over. We must act now, with unprecedented unity and resolve, to avert the impending catastrophe and secure a sustainable future for generations to come.
Ethiopia has made significant strides in developing its renewable energy sector in recent years as part of its broader efforts to transition towards a green economy. The country has set ambitious targets to increase its renewable energy capacity and reduce its reliance on fossil fuels.
The country’s renewable energy policy is primarily guided by its Climate Resilient Green Economy (CRGE) strategy, which outlines Ethiopia’s goal of becoming a carbon-neutral middle-income country through the expansion of renewable energy, reforestation, and other sustainability initiatives.
It needs to meet rapidly growing electricity demand, reduce greenhouse gas emissions, and build climate resilience. The country has abundant renewable energy resources, including significant hydropower, geothermal, wind, and solar potential. Developing these resources is seen as key to supporting Ethiopia’s economic and social development goals.
To achieve this, the government has invested heavily in expanding its installed capacity for the renewable energy transition. Several large-scale renewable energy projects are currently underway or in the planning stages across the country.
Recently, the Ethiopian Investment Commission (EIC), Ministry of Water and Energy (MoWE), and United Nations Trade and Development Agency (UNCTAD) held a discussion on financing and investment for energy transition in Ethiopia in the presence of government officials, CSOs, and experts.
EIC Commissioner Hana Arayaselassie said that the government has been revising policies and legal frameworks in a bid to promote private sector engagement in the renewable energy sector, but it has not yielded fruit because of a lack of streamlined institutions and collaborative interventions among stakeholders, institutions, and the private sector.
She has also asserted that the country has immense potential in renewable energy sources such as hydro, wind, geothermal, and solar power, in spite of the minimum investment in the sector. To address this gap, the commission is working on investment promotion through providing incentives to investors.
The commission is promoting investments by offering incentives to investors in an effort to close this disparity. Even though Ethiopia is one of the leading nations in the green economy and has a virgin market, only roughly 55% of people have access to electricity.
For his part, MoWE Senior Energy Advisor Gosaye Mengistie stated that Ethiopia is one of the few countries in the world generating almost all its electricity from renewable sources, mostly hydropower and green energy.
However, he emphasized that the generation capacity and related infrastructure development are very low, since the country’s electricity access rate is not more than 54% and the clean cooking access is about 10%. Gosaye underscored that with six years of ongoing effort, the overall electricity access rate has increased from 44% to 54%, but still 46% of the population lacks access to electricity.
Although there has been progress in electrification in recent years, the expansion rate is still far from what is needed to achieve universal electricity access by 2030. The work is constrained by limited funding, weak implementation capacity, and a lack of imported materials, he said.
Hana emphasized the need to adjust generation and transmission opportunities accordingly in order to satisfy the remaining rate concurrently with the established industrialization aim in the manufacturing and other sectors. As to her, prospective investors have expressed a strong desire to involve in the renewable energy industry by creating a playground through improved banking and investment ecosystems.
She further stated that the commission and UNCTAD had started a three-year operational project to showcase the nation’s potential as a hub for renewable energy and attract foreign investment. The government, understanding the threat posed by climate change, has embarked on a bold transition to a renewable energy policy. This visionary shift, a beacon of hope in a world struggling to adapt, signifies a commitment to a sustainable future, not just for Ethiopia, but for the entire planet. By harnessing the power of nature, Ethiopia is leading the way, demonstrating that a greener future is not only possible, but essential for our collective survival.
Furthermore, Ethiopia’s renewable energy policy represents an important component of the country’s broader sustainability agenda and efforts to transition to a low-carbon, climate-resilient economy. The successful implementation of this policy will be critical to determining Ethiopia’s long-term energy security and environmental sustainability.
UNCTAD Regional Office for Africa Chief Diane Sayinzoga stated that the discussion is crucial for the development of a robust strategy to promote, and it seeks to leverage the country’s ambitious climate change objectives outlined in its Climate-Resilient Green Economy Strategy as well as facilitate sustainable investment for the energy transition in Ethiopia.
She emphasized that a whole-of-government approach is needed for the promotion of green growth investment areas, the development of green bankable projects, and to support new and existing companies and project sponsors to invest in the energy transition.
She highlighted the urgent need for investment in renewable energy generation, energy efficiency, and energy infrastructure to combat climate change and achieve sustainable energy access for all. Ethiopia, with its ambitious climate-resilient green economy strategy, is committed to transitioning to a greener future.
This energy transition also promises significant economic benefits, creating new industries, generating jobs, and attracting foreign investment. Furthermore, it ensures energy security for a nation that has historically faced power shortages.
In this sense, the country must overcome logistical hurdles, invest in infrastructure, and develop a skilled workforce to fully realize the potential of this ambitious plan. However, the Ethiopian government is demonstrating a remarkable commitment to addressing these challenges head-on. The government’s unwavering dedication to renewable energy is a testament to its understanding of the interconnectedness of climate change, economic development, and social progress.
The project aims to support a “whole-of-government” approach to attracting investment in the energy transition, involving key government actors like the EIC and MOWE, with a call to action for stakeholders to work together to develop a comprehensive strategy for attracting and facilitating sustainable investment in Ethiopia’s energy transition, it was learnt.
Ethiopia’s journey towards a renewable energy future is a powerful example for the world. It shows that even developing nations can take bold steps to combat climate change while simultaneously improving the lives of their citizens.
Among the initiatives, the country has been recognized for its efforts in promoting sustainable development, particularly with the establishment of the Hawassa Industrial Park, an eco-friendly textile and apparel facility that utilizes efficient water and energy consumption, waste treatment, and renewable energy. embracing renewable energy, Ethiopia is not only
By securing its own future but also inspiring other nations to follow suit. The world is watching, and Ethiopia’s success in transitioning to a sustainable energy system could serve as a catalyst for global action.
BY FIKADU BELAY
The Ethiopian Herald August 18/2024
