In relation to the energy sector, two pieces of legislation are expected to pass in 2017. They are (i) the Draft Council of Ministers Regulation to provide for Energy Operations and (ii) a regulation to implement the Geothermal Resources Development Proclamation. The government is also developing a public-private partnership (PPP) proclamation. In line with Ethiopia’s evolving policy to stimulate private investment in the electricity sector, it has become evident that the government will need to pass new laws in relation to IPPs and PPPs. The above legislation, if approved, will promote the participation of the private sector in building infrastructure and developing public sector projects.
The geothermal proclamation, which was promulgated in early 2017, aims to stimulate investment in geothermal resources. The development of geothermal resources is currently governed by generally applicable mining legislation, and its use to date has been limited as a result. The new proclamation will, if enacted, set forth the overall framework governing geothermal resources. The draft regulation will implement the proclamation at a more practical level by providing guidance on issues such as how licences should be applied for and issued to IPPs, and the requirements that projects must satisfy in order to qualify for a licence.