(The National Electrification program, NEP, document):
Adequate, reliable, and affordable electricity access connectivity nationwide is a critical enabler for realizing Ethiopia’s future growth and transformation,economic prosperity, and well-being of all its citizens nationwide. Today, grid connected household connectivity is about 20+ percent of the population. And many priority social services delivery institutions especially in rural areas—schools and clinics—also have limited access connectivity and reliability. There is no time to lose. Following release of the Government’s National Energy Strategy (NES–2016) and reflecting its recommendations, the Ethiopia’s National Electrification Program (NEP)—Implementation Roadmap (IRM) presents the Government’s action plan for achieving universal electricity access nationwide by 2025, in a strategic and comprehensive as well as efficient and transparent manner, for the benefit of all its citizens. Toward this end, the key operational action elements of the NEP-IRM target are:
Electricity Tariff- is the rate at which electrical energy is supplied to a consumer. Electricity tariff (sometimes referred to as electricity pricing or the price of electricity) varies widely from country to country, and may vary significantly from locality to locality within a particular country. There are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns.
In standard regulated monopoly markets, like the case in Ethiopia, electricity rates typically vary for residential, commercial, and industrial customers. Prices for any single class of electricity customer can also vary by time of day or by the capacity or nature of the supply circuit etc. If a specific market allows real time dynamic pricing, a more recent option in limited markets to date typically following the introduction of electronic metering, prices can even vary between times of low and high electricity network demand.
(Featured Story/World Bank, March 8, 2018)
When it comes to energy, Ethiopia has tremendous advantages. It has the second-highest installed available capacity for electricity generation in Sub-Saharan Africa, at 4.5 GW. It has a well-developed transmission and distribution network, with nearly 80 percent of the population living within proximity of medium-voltage transmission lines. It has abundant sources of renewable energy just waiting to be tapped – including wind, solar and geothermal– enough to easily supply the power needs of the country. And it is one of the few countries in the world where the electric grid is nearly 100 percent supplied by renewable sources.
The electricity access coverage of Ethiopia is still very low, covering only about 30% of the population so to say. To address the energy access challenge of the remaining 70% of the population, the country plans to leverage the capability of the private sector in addition to the efforts of the long practiced public sector led initiatives.
As the country tries new ways of addressing the access challenge, it requires a thorough understanding of the new business models and the new perspectives not only to realize the stated objectives and goals but also manage the downside risks emerging from the new practices.
To assist the developing countries in closing the knowledge gap that existed, development partners wrote and shared handbooks that could help tap the best practices for all the players, the public sector in particular, to benefit from the engagements.