Ministry of Trade and Industry said it will implement a Green Manufacturing and Energy Efficiency strategies that contributes to the acceleration of green manufacturing practice in Ethiopia. This was disclosed at a Clean Energy and Green Manufacturing Leadership Workshop held today. Trade and Industry State Minister, Teka Gebreyesus said the government has been working to make Ethiopia’s manufacturing and industry development more effective and competitive by making it clean.
He added that various strategies have been designed to enhance the role of eco-industrial parks in the country’s economic development. Acccording to him, the workshop will help to gather feedbacks and comments which will help as inputs to the strategies. The strategies are going to be implemented starting in 2020, following extensive discussions with other stakeholders, the state minister pointed out. Industrial Parks Development Corporation USAID Contractor, Hiwot Hailu said the strategies will support the county’s efforts to achieve its ambitions to become low middle income status by 2025.
In a country of approximately 100 million people, roughly 44% of Ethiopians have access to electricity. Ethiopia’s National Electrification Program 2.0 aims to fill this electricity access gap: by ensuring 100% access by 2025.
To reach this ambitious target, the government is engaging in an array of innovative partnerships with development organizations and the private sector, helping make sure that no one is left behind in the push for universal access to electricity.
Energy-intensive industries such as textiles, metal and cement are going to sign an agreement with the Ethiopian Energy Authority to control energy losses. To enact the new system, the Authority has drawn up a directive that will operationalise voluntary energy efficiency agreements. The directive is expected to be effective before the end of this month.
The Authority took experiences from eight countries in drawing up the draft, which awaits approval by the board next week, and worked with government entities such as the Ethiopia Electric Utility. Manufacturers with an annual consumption of at least 20GWh will be encouraged to enter into agreements with the Authority binding them to energy saving action plans to be met within a certain period. Failure to meet these targets will result in penalties based on estimates of their energy losses.
Raise the overall price of electricity to reflect the cost of service after taking into account any capital cost subsidies for extending service to rural areas. Also, incorporate other best practices into the distribution sector to promote rural electrification. Ethiopia’s low electricity prices cause problems for rural electrification as a business. The electricity price for rural households is extremely low, making it difficult for EEPCo to recover its costs. The price for those consuming 50 kW or less per month is about US$0.02 per kWh. Even at the level of 400 kWh, the price of electricity is only $0.03 per kWh. This means that the rural electrification program loses money on every new customer. Consumers have little incentive to conserve electricity, and EEPCo has little incentive to provide the necessary operation and maintenance for rural lines. In the future, this will likely cause a decline in the quality of service.
Have simple and effective mechanisms for targeting the poor. In this GPOBA program, targeting was achieved by combining geographic criteria with self-selection methods. The targeting was consistent with the Ethiopian government’s policy of providing equity and broad geographical coverage for its rural electrification access program.
Facilitate house wiring in both standard and substandard housing. One major issue identified in this study was EEPCo’s policy of connecting only those homes made of concrete, which frustrated many poorer households who were ineligible for electricity service. They, in turn, decided to string wires to a neighboring house with a legitimate meter. Most of the problems involving indirect household connections could be avoided by developing standard waterproof ready boards for installation in houses constructed of substandard materials.