Following the reform program begun in 2013 including the liberalization of the generation sector, establishment of an independent regulator, unbundling (vertical) of the state power utility and enacting of a public private partnership law, the energy sector has made a fair share of its own version( in contrast to the standard power sector reform model) of reform progress in Ethiopia.
In addition to the ongoing hydro based investments/constructions still taking place ( GERD, Genale, Koisha being the few examples), key mile stones are also being made in new technologies and business models albeit a slow pace and rigor.
Utility scale ((1* 100MW, 2*125MW) solar projects have been awarded to IPP developers and few more are in the tendering stage,
The administration of Prime Minister Abiy Ahmed (PhD) has been amending the investment law to enable the private sector engagement in the manufacturing of weapons, ammunition and explosives, which were exclusively reserved for the state, in a joint venture arrangement with the government.
The bill, drafted by the Ethiopian Investment Commission and a technical team, also allows the private sector to invest in air transport and postal services, engage in the import and export of as well as the transmission and distribution of electricity partnering with the state.
Find a paper, funded by DFID and output by CDKN , that outlines the the key energy institutions, initiatives and players in the Ethiopian energy sector and contains a substantial resources that could be a reference for further research.
Read the paper Here>>>
A new bill that eases registration and licensing processes for geothermal development companies has been submitted to the Council of Ministers for approval. Drafted by the Ethiopian Energy Authority last year, the draft regulation categorises the resource into two sections depending on the capacity of energy. Grade one is a geothermal resource that is able to generate electric power, while Grade two is used for agricultural, industrial, medical and recreational purposes.
The bill has also identifies three types of licenses for geothermal developers. Reconnaissance is the first stage in licensing that is granted for two years and is non-renewable. The exploration license allows developers a five-year exploration window that can be renewed for two year-long terms. Wellfield development licenses are the final license issued and allow for 25 years worth of production concession options that can be extended.