Ethiopian Energy^Power Business Portal,eepBp

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Climatescope 2019 profiles 104 emerging markets worldwide and evaluates their ability to attract capital for low-carbon energy sources while building a greener economy. For the first time since BloombergNEF began the Climatescope survey, India tops the rankings. The Asian nation is followed in the top five by Chile, Brazil, China and Kenya. The detailed report described what drove each of the top five markets to the top of the ranking.

The same report ranked Ethiopia 55 globally with a score of 1.83. The report provided highlights for the Power Market, Clean Energy Policy, Clean Energy Investment, Price environment, Doing Business and the Barriers in the sector.

Key highlights the report touches upon the power sector in Ethiopian  are

  1. Ethiopia has 4.3GW generation fleet, of which nearly 90% comes from hydro, putting the country among the cleanest and largest in Sub-Saharan Africa
  2. The country has far greater ambitions setting a goal for 17.2GW of power capacity by 2020. Despite over 8GW of large hydro in the development pipeline, Ethiopia will fall far short of its target. The roll-out of several policies in the near term should still make clean energy investment attractive in the country,
  3. A domestic commercial and development banks play a much smaller role in the growth of the country's clean energy industry compared with neighboring countries resulting foreign cusrrncy pressures. International development banks are picking up the slack ' traditional players like the World Bank, the Danish Energy Agency and the Japan International Cooperation Agency (JICA) all have boots on the ground and are actively involved in Ethiopia's clean energy market,
  4. The heavy presence of cheap hydro gives Ethiopia among the lowest power prices in Sub-Saharan Africa. The utility increases/adjusts retail prices starting in December 2018 to improve its profitability. The average retail electricty price is 27.59$/MWh
  5. Most private sector opportunities in Ethiopia's clean energy space exists within the on-grid sector. Mini grids and off grid products still factor into meeting the rising demand which is growing at 30% annually . The country has a separate goal of distributing 3.6 million solar lanterns and 400,000 solar home systems by 2025, but this potential has largely gone untapped. While off-grid solar products in Ethiopia are expected to be exempt from value-add taxes like the rest of East Africa, enforcement of this policy is spotty, and many importers have been dinged with additional charges. This enforcement will need to be improved to grow the country's off-grid market. 
  6. With the current regulation, the generation sector is the only sector of the power market open to private participation. There is a hope that further segments of the power sector would be open for private particiapation to bolster the financial resources and speed up the countries goal of reaching 90% access to electricty with fair diversification of energy sources by 2025.

Source: BoombergNEF You may access the country/Ethiopia report here>>>



Assessment of Ethiopian Energy and Power Business Updates from Policy to Implementation, October 2019


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