Left with a decade to meet SDG 7 goals, the current pace of electrification through to the last mile is far from sufficient. The world has to do better.
Among the SDG 7 targets, achieving universal access to affordable, reliable, sustainable, and modern energy services (Target 7.1) is the one that has the most profound implication for Ethiopia having only 45% and less than 5% access to electricity and cooking services respectively.
SDG 7: Target 7.2 calls for substantial increase of the share of renewable energy in the energy mix. The most predictable positive development in Ethiopian Energy system is the fact that almost all grid supply (except backups) comes from renewable sources. Many key projects from multiple sources are under development to minimize the current hydro dependency. There are also interests and signals to shift the transportation and industrial use to electric sources albeit at early stages.
SDG 7: Target 7.3 calls for energy efficiency improvement. For Ethiopia, although the energy intensity (units of energy per unit of GDP) slightly declines over the years reaching 9.7(MJ/USD 2011 PPP) in 2017, it still needs a significant improvement even to hit the global average of 5.0 the same year. In my view, the historically low electricity tariff in the country has played a significant role for the inaction or lower efficiency performance.
The report provides policy recommendations based on best practices as identified by national authorities and the international community as insights to emulate.
In reference to the best practice insights provided, based on the publicly available rate of access and informed by the country practice, this article will shade some light on the Ethiopia case as a matter of bringing the topic to the larger public attention. Hoping it would drive further discussion and action. Given the significance, this review will focus only on target 7.1. You are advised to read the full report for a complete picture of the progress of all the energy targets.
Before you continue reading this article, you are, again, advised to quickly go through part I of this series to understand the overall background.
Driven by the ongoing economic and the energy sector reforms, the Ethiopian energy and power sectors have become attractive to private sector investment. Generation side independent power producers including geothermal and utility scale solar projects are being introduced, currently just passing the stage of a financial close, with lots of expectation to follow by other forms of generation technologies such as in hydro and wind. There are also a few PPP based examples in the transmission side albeit at an early stage.
Historically, the energy and power sector infrastructure development in Ethiopia has been dominated by public sector investment where the responsibility of communities and key stakeholders rested on the shoulders of the government. The private sector has been engaged mainly in consulting and contracting scope of works with minimum direct responsibility of engaging the wider community.
At the same time, until very recently, the communities buy in to the government’s aspiration of building infrastructure for a larger public good as opposed to the individual and communal loses they incur whether loss of their land, environmental safety concerns, disruption of their social constructs and etc. and despite incomparably lower (as compared to current market prices) compensations in place, the broken promises and the slow bureaucratic procedures they often faced. It is no more the same.
In its press briefing today, Ethiopian Electric Utility, EEU, announced that it has collected ETB14.97 billion from Energy and related sales out of the planned ETB 25.38 billion. Its planned revenue collection performance reached only 59%.
Mr. Shiferaw Telila, CEO, Ethiopian Electric Utility, EEU, said ETB11.06 billion Revenue was generated from energy sales alone. The Utility collected additional revenue from Connection Charges( ETB 3.88 billion), sales of scarped materials (ETB 19.03 million), arrears (ETB200 million) and other sources( ETB 7.43 million).
The CEO told the audience that the utility managed to construct 3403.81 KMs MV lines, 2797.19 KMs of LV distribution lines, installed 769 distribution transformers, connected 168,751 new customers, electrified 308 rural towns and villages and rehabilitated all of the 17 planned towns this year budget year.
The utility has also commissioned Enterprise resource planning, ERP, system meant to modernize the organization's operational processes, standardizing the financial reporting and digitizing the payment collections systems.
Source: Ethiopian Electric Utility, EEU
|01 Sep 2020;|
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