Ethiopian Energy^Power Business Portal,eepBp

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Part I

The 2020 edition of Tracking SDG 7: The Energy Progress Report that monitors and assesses attainments in the global quest for universal access to affordable, reliable, sustainable, and modern energy by 2030 is out. The reports says, “Although the world continues to advance toward SDG 7, its efforts fall well short of the scale required to reach the goal by 2030 with a disturbing figure of 789 million people still without access to electricity and 3 billion people without access to clean cooking fuels(2018)”.

If as such is the global reality, what does the statistic show for Ethiopia specifically?

A helicopter view of the report clearly shows that Ethiopia is one of the 20 countries with the largest access deficit, the share of the population having access to electricity still at 45%, and only less than 5% of the population having access to clean fuels, as of 2018.

In population terms, close to 60 million Ethiopians are without access to electricity and almost 98 million people remain without access to clean fuels in the same year and it is the very reason that accelerated investment is needed in the energy sector. 

 

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Energy sector Reform: where it stands

(Vivien Foster, 2019), Rethinking Power Sector Reform in the Developing World report suggests that future power sector reforms should be shaped by context, driven by outcomes, and informed by alternatives with a clear departure from the normative 1990s power sector reform prescription which comprised a package of four structural reforms: Regulation (through the creation of an autonomous regulatory entity); Restructuring (entailing corporatization and full vertical and horizontal unbundling of the utility); Private sector participation (particularly in generation and distribution); Competition (ultimately in the form of a wholesale power market).

(AfDB, 2019), Revisiting Reforms in the Power Sector in Africa, asserts that the power sector in Africa still largely retains the traditional integrated monopoly utility structure, although many have included IPPs, despite the standard model Prescription of the reform targeting all segments of the power sector value-chain in Africa, and in very different ways pointing that the standard model reforms generally did not prioritize social and political goals of expanding access to electricity and clean energy sources, nor improving equity or affordability conditions.

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