In recent years, Ethiopia has emerged as a powerhouse in the renewable energy sector, utilizing its abundant water resources to generate electricity and foster economic integration in the region. The Ethiopian government has placed great emphasis on the development of mega projects, particularly the construction of dams on tributary rivers characterized by rapid falls. These projects hold the potential to transform the country into a hub of renewable energy and promote economic growth.
Recognizing the importance of power as a fundamental requirement for both foreign and domestic investors, the Ethiopian government has capitalized on its streams and rivers to provide hydroelectric power to various industries operating within the country.
The Ethiopian Electric Power (EEP) has revealed a plan to earn over 73 million USD from electricity sales to foreign companies operating locally. Menelik Getahun, the Sales and Customer Management Manager at EEP, stated that agreements have been signed with nine foreign companies to supply electricity in USD, which is a significant achievement for the utility. This move not only addresses the needs of foreign companies but also streamlines the process for all parties involved.
Furthermore, concerted efforts are being made to increase the amount of electricity exported to neighboring countries, thereby enhancing foreign exchange earnings. To facilitate this, the construction of additional power transmission lines is crucial to ensure uninterrupted service and reduce costs. Power distribution centers are being established in border areas to minimize the expenses associated with exporting electricity to neighboring nations.
In the previous fiscal year, EEP generated over 102 million USD from electricity exports to Djibouti, Sudan, and Kenya. Djibouti remains the leading destination for Ethiopia’s electricity exports, followed by Sudan and Kenya. This demonstrates the country’s commitment to renewable energy and its potential as a major supplier in East Africa.
The Ethiopian government, in collaboration with the Kenya Power & Lighting Company Plc, has signed a Power Purchase Agreement (PPA) for the sale and purchase of 200 MW of energy in the first phase of power exports, with the expectation of increasing it to 400 MW in the future. The Kenya-Ethiopia Electricity Highway Project, also known as the Eastern Electricity Highway Project, involves the construction of a 1,068 km-long power transmission line from Ethiopia to Kenya. This project, which commenced in 2016, includes the installation of AC/DC converter stations at both ends and spans 437 km in Ethiopia and 631 km in Kenya. The transmission line passes through various regions in both countries, bringing reliable and affordable energy to millions of households, including those in rural areas.
The overall investment in the project amounts to $1.26 billion, with financial contributions from the World Bank, the African Development Bank, the French Development Agency, the Ethiopian government, and the Kenyan government. The successful completion of this project not only strengthens the bilateral relationship between Ethiopia and Kenya but also serves as an example of regional economic cooperation benefiting the entire continent. After a trial transmission of power in a few weeks, full-scale power exports are scheduled to commence in November 2022.
Ethiopia’s transformation into a major player in the renewable energy sector has significant implications for the country and the region as a whole. The exploitation of its water resources for hydroelectric power generation has not only attracted foreign investment but also facilitated economic integration and cooperation among nations. By capitalizing on its natural advantages, Ethiopia has harnessed the power of renewable energy to drive economic growth, improve access to electricity, and contribute to the sustainable development of the region.
One of the promising resources that bind and cemented nations together is the desire to exploit renewable energy so that the country has scored remarkable result in utilizing its rich water resources for common good of the region. Situated in elevated geo-entity, Ethiopia is the upper course of streams and Trans Boundary River which intern makes the country the power house of renewable energy.
Having taken this fact in consideration the Ethiopian government has been given due emphasis for the development of mega projects building dams on tributary rivers on terrains of rapid and falls. Such and such projects are believed to bring about economic integration in the region and bright hope to foster single economic society based on mutualism.
As power is one of the fundamental demand of foreign and domestic investors the Ethiopian government, taking advantage of streams and rivers continued to afford hydroelectric for the secondary economy that are operating in Ethiopia.
Documents unveiled that, Ethiopia is endowed with abundant renewable energy resources, which can meet the ambitions of nationwide electrification. However, in spite of all its available potentials the country energy sector is still in its infancy stage. The majority of Ethiopian population lives in the rural area without access to modern energy and relied solely on traditional biomass energy sources.
Nowadays Ethiopia has one of the lowest electricity consumption per capita in Africa. Recognizing that energy access and security are a crucial factor to economic growth; Ethiopia needs to cope with key challenges related to energy security and diversification of energy supply. Scholars on the energy sector have been providing a comprehensive and extensive review of renewable energy potentials in Ethiopia. Further, current state of renewable energy resources is described and existing energy policies are articulated. Various policies, that could possibly promote energy technology use in a rural Ethiopia, are proposed.
In line with this most agree that the government relevant authorities are urged to back stretching projects and the researchers as well as the government officials to find the better renewable energy technology to meet rural community energy demand; by raising awareness of the country energy potentials and current state of renewable energy, along with proposing pragmatic recommendations, according to studies on the sector.
In conclusion, Ethiopia’s focus on exploring and exploiting renewable energy, particularly hydroelectric power, has positioned the country as a key player in the sector. Through the development of mega projects, the government has attracted foreign companies, generated significant revenue from electricity exports, and promoted economic integration in the region. The successful completion of the Kenya-Ethiopia Electricity Highway Project further solidifies Ethiopia’s position as a hub for renewable energy, benefiting both the country and its neighboring nations. With its commitment to sustainable development, Ethiopia continues to transform rapid falls into a lucrative source of energy.
BY LAKACHEW ATINAFU
THE ETHIOPIAN HERALD 5 SEPTEMBER 2023
