Ethiopia is making strides toward becoming East Africa’s leading energy provider by advancing several green energy mega projects. The country is rapidly developing hydro, wind, solar, and geothermal energy initiatives to meet growing electricity demands locally and in neighboring countries.
Key projects include the Abbay Dam, Koysha, Aisha, Assela, and Aluto Geothermal, aiming for a total generation capacity of 7,242 MW this year, with some already operational, according to Ethiopian Electric Power (EEP) CEO Ashebir Balcha (Eng.).
Ashebir highlighted plans to expand electricity access to South Sudan, Somalia, and Somaliland within the next three years. Despite delays in the electricity wheeling payment system between Kenya and Tanzania, Ethiopia has reached agreements to begin electricity sale testing to in Tanzania in mid-September.
The CEO also announced plans to increase power generation from 5,200 MW to 8,400 MW this fiscal year and export 22,000 GWh to neighboring countries. He further emphasized that ongoing macroeconomic reforms are expected to alleviate the foreign exchange challenges that have long affected the power sector.
Acknowledging the growing energy demands and the rise of industries and economic zones, Ashebir stated that the government is working to boost regional energy cooperation and attract investment through concessional loans and independent power producer (IPP) schemes. EEP has also crafted a three-year strategy and a five-year cash flow forecast to reduce financial dependency. In line with the government’s clean energy policies, opportunities are being opened for private energy developers and IPPs to invest in the green energy sector.
He noted that hydropower remains the dominant energy source, accounting for 96% of the total, followed by wind (3.3%) and waste-to-energy (0.2%). Reviewing the past year’s performance, the CEO revealed that domestic energy consumption grew by 17% compared to 2022/23, and overall energy yield has increased by 8% over the past six years. Export levels also saw a 6% rise compared to the previous year.
EEP is also enhancing its financial independence by renting optical ground wire to Ethio telecom and Safaricom, generating 27 million USD in recent months. Despite challenges like infrastructure damage and theft, which cost 817 million Birr in repairs last fiscal year, Ethiopia remains committed to its green energy goals.
For his part, Finance Minister Ahmed Shide emphasized the importance of the 300 MW Aysha-1 wind power project as a significant step in Ethiopia’s energy strategy, underscoring the country’s commitment to sustainable development and regional energy integration. “This project is not just about generating energy; it is about energizing our future through sustainable green development,” he remarked.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD SUNDAY EDITION 25 AUGUST 2024
