Apart from regulation, currency and land right issues are two of the biggest concerns for private investors in infrastructure developments in Ethiopia and so much so in Africa.
In Ethiopia for example, there are projects initiated to be developed on a public private partnership, PPP, business model where the private sector will finance, build and operate for a concession period of 20 to 25 years. The recent Scaling Solar tenders could be good examples. Independent Power Producers, IPPs, will generate energy and sell to the public entity with a pre-agreed sales agreement usually called Power Purchase agreement, PPA, for the energy and power sector. The tenders put a requirement for Special purpose Vehicle, SPV, projects to have a local content in the form of shares and using local resources in order to win the projects.
The Ministry of Water, Irrigation and Energy, #MoWIE, of Ethiopia hosted a Week of Water and Energy, #EWEW, with a theme of ‘ Transforming of the Water and Energy Sectors for Ethiopia’s New Horizon of Hope ‘ in Skylight hotel, Addis Ababa, Ethiopia. The program was officially opened on 7 June 2019 by her Excellency Ambassador Sahlework Zewde, the President of the Federal Democratic Republic of Ethiopia and it will continue up to 20 June 2019 covering different thematic areas.
Photo Credit: Tigabu
Open Africa Power 2019- Forging a New Generation of Clean Energy Leaders for Africa
The second round of the African module of the Open Africa Power, the educational program of Enel foundation, took place from 28 January _ 1st of February, 2019 in Addis Ababa, Ethiopia, involving 60 passionate, high profile, young and deeply engaged practitioners from the energy, power and sustainable development sectors selected across the continent with an aim of creating the African energy leaders of tomorrow who would make a difference in the continent’s clean energy future and beyond.
The program inspired the participants raising the expectation out of them given the existing challenges and opportunities of the energy sector across the continent and elsewhere and it was indeed a success by all measures. Thanks to the organizers.
The Ethiopian Electric Utility made an adjustment to the Electricity/energy tariff applicable since the beginning of December 2018. The Electricity/energy tariff is one of the key factors that determine the investment decision of private players in the power sector of countries. After such a long delay, the utility has finally made a decision and increased the tariff as indicated in the tables below.
Apart from the increase of the rate, there is also a clear distinction between the old and the new tariff calculations in the residential category. Historically, the tariff used to be non-flat or an increasing rate. The new tariff is set in a block or flat range and will have major cost implication for the consumers. In the new tariff of the residential category, the energy in KWH is multiplied with the tariff block where the monthly energy figure rests.