It is well recognized that these days unknowingly or calculatingly carried out human activities are seriously causing planetary scale changes on land, in oceans, in the atmosphere with of course dramatic and longstanding ramifications. What is happening in our country, Ethiopia, is not exceptional along this line.
Keeping this fact in mind, The Ethiopian Herald talked to Mohammed Musa, an environmental scientist graduated from Addis Ababa University in agro-economics, to have a professional expertise regarding the significance of expanding renewable energy as Ethiopia is endowed with a range of sources in that regard except lack of technology and financial aspects.
Mohammed said, “A robust supply of renewable energy components and raw materials is essential. Technology, capacity and funds for renewable energy transition exist, but there needs to be policies and processes in place to reduce market risk and enable and incentivize investments including through streamlining the planning, permitting and regulatory processes as well as preventing bottlenecks/red tapes.”
As to him, not only does shifting subsidies from fossil fuels to renewable energy cut emissions but it also contributes a lot to the sustainable economic growth, job creation, better public health and more equality, particularly for the poor and most vulnerable communities.
Obviously, he said, following the rapid evolution of urbanization and industrialization, economic growth is increasingly dependent on the energy consumption, and the relationship between energy consumption and economic growth has been fostering Ethiopia’s sustainable economic development. He further said that renewable energy is indeed an active player regarding energy supply security and the reduction of fossil fuel dependency and harmful emissions to the environment. True, energy products are having great importance in meeting an increasing demand in energy consumption.
He said that lack of access to energy impedes both economic and human development as well as affects the radical acceleration of the pace of scaling energy access to create a more resilient, equitable and sustainable future.
“The cardinal step that needs to be taken to reverse such a daunting challenge has to be ending reliance on energy generated from fossil fuels, which are the main cause of climate change and environmental degradation. Hence, the critical action Ethiopia and its counterparts of the world need to prioritize now is working to transform energy systems and speed up the shift to renewable energy as without them it can be deduced that no future at all,” said Mohammed.
Taking the diversification of energy system and a transition towards renewable energy into account, the country needs to be increasingly reliant on imported fossil fuels, affecting its national energy security and economic growth. Ethiopia can choose a different path by accelerating the shift to renewable energy. There are challenges, including enhancing grid and transmission infrastructure, as well as biomass collection and logistics. These challenges can be overcome through effective planning and by creating mechanisms that value the external benefits of renewable energy. “If Ethiopia acts decisively to increase the role of renewable in its energy system, it can significantly reduce the pollution of its environment, enhance its energy security, benefit its economy and play a leading role in mitigating climate change,” said Mohammed.
The main drivers for this shift are the increasing cost-competitiveness of renewable energy technologies and other benefits such as improved energy security and decreased air pollution. Since renewable energy’s economic effects have been hotly debated as it is a promising energy source, Ethiopia has to well embark on the energy under discussion, he said.
Without a shadow of doubt, non-fossil energy sources, such as wind, solar, hydro, and geothermal energy, are all examples of renewable energy, and it is a sustainable form of energy. It is also crucial component of Ethiopia’s multi-wheel drive energy supply system though a lot remains to be done in that regard. It is also a non-polluting and low-carbon scheme.
As to him, developing energy infrastructure, conserving the environment, dealing with climate change, and achieving sustainable economic and social growth can be accelerated via utilizing renewable energy, indeed!
According to Mohammed, Ethiopia’s renewable energy needs to be significantly expanded to provide the population with a pollution free energy sources.
It is found that said Mohammed the effect of renewable energy consumption on economic growth is inevitable, and the direct and positive effect of renewable energy consumption on economic growth can be well verified. Specifically, renewable energy consumption indirectly affects economic growth via the mediators of gross capital formation, the labor force, trade openness, research and development expenditure, and foreign direct investment.
It is also obvious that environmental deterioration has resulted from an over-reliance on fossil-fuel usage to develop economies. Therefore, renewable energy consumption has become the goal of the Ethiopian government.
He further elucidated that the paths are renewable energy consumption → gross capital formation → economic growth, renewable energy consumption → labor force → economic growth, renewable energy consumption → trade openness → economic growth, renewable energy consumption → research and development expenditure → economic growth, and renewable energy consumption → foreign direct investment → economic growth. This portrays that renewable energy is everywhere in economic transaction.
As the positive economic effects of renewable energy consumption are vivid ones, the government should accelerate renewable energy to replace non-renewable energy, which would help economic growth and improve environmental quality, Mohammed said.
“It is also well comprehended that Ethiopia’s conventional economic development strategy has been based on fossil fuels. Wind farms and solar power plants have also been installed in some Ethiopian localities and provinces. Low-carbon power transition will have a positive economic and employment effect to promote inclusive growth,” he added.
According to Mohammed, the low-carbon power transition will also have a great impact on the economy and society, and the renewable energy development overall, has a positive effect on the economy and employment. “Power transition matters the entire industrial chain, enterprises, and employees of the enterprise. When formulating transition plans, the government needs to consider supporting policies for these sectors and establish a comprehensive and just transition policy system.”
At national level, there are noticeable differences in resource endowments among regional states in Ethiopia, and there is a flow of factors between regions and industries. While promoting the national economy and employment, it is necessary to adopt policies tailored to local conditions for different regional states in the country.
He further elucidated that in the future, the influence of social and economic should factors also be taken into account when making the power transition planning from fossil flues to renewable energy utilization.
The most significant economic benefit of renewable energy technologies is perhaps the cost of the electricity that they generate. Of course, he said, renewable energy investment has been an important economic engine in Ethiopia and will play an even more significant role in boosting the economy than before. Renewable investments in the country will also contribute to rising energy output from the sector, as well as offering the potential to boost domestic and regional as well as continental economic growth, by driving down wind and solar cost and by creating economic opportunities in terms of manufacturing and deployment.
From the outset of the entry into the market of renewable energy, the government should take the lead in demonstrating renewable energy utilization in Ethiopia. Besides, the government facilities can incorporate renewable energy facilities of all types including biomass fueled cogeneration at appropriate sites. Such a bold move plays an important role in stimulating greater renewable energy use in the country. Examples include using non-grid connected renewable energy generation to provide core services in remote areas such as potable water, health facilities, schools and community meeting centers.
Rapid industrialization and urbanization have led to environmental degradation in developing countries like ours, including excessive energy consumption, soil contamination, and water pollution. In this regard, the Ethiopian government is trying hard to shift toward green energy sources and frame a scheme to bolster homegrown economy. Here, policymakers are expected to do all their part and try to develop innovative concepts or introduce new technology to reduce environmental loss while sustainable ecological measures. Unequivocally, since the intensive use of green energy sources such as solar and wind will help increase the involvement of renewable energy, lessen pollution, and improve the air quality in urban areas thereby making a substantial contribution to building sustainable anticipations of energy systems in the nation, it is high time to work hard on renewable energy expansion and enhancement.
BY MENGESHA AMARE
THE ETHIOPIAN HERALD TUESDAY 30 JANUARY 2024
