The Ethiopian government has drafted a new national standard for the small-scale solar home system (SHS) with the primary aim of regulating the quality of imported items. The standard, which was drafted with a joint effort by the Ministry of Water, Irrigation & Electricity, Ethiopia Standards Agency and Ministry of Environment, Forest & Climate Change, was finalised two weeks ago. It was then tabled for discussion to receive comments from stakeholders in a seminar that was held in Adama, 100Km South of the capital.
The Initiation to drafting the standard came from the MoWIE that requested the Standard Agency for the preparation of the standard in November 2016. The technical committee of the Agency, formed to formulate such specification drafted the standard in collaboration with stakeholders including the United Nations Development Programme (UNDP) and World Bank’s International Finance Corporation (IFC). The two global development partners assisted the process with finance and technical aids. Global Environment Facility of the UNDP has pledged 15,000 dollars for the drafting process that took a year.
The draft directive identifies four types of bids for the PPP agreements. A bill is underway to establish an autonomous body that will manage the structural and legal framework of the Public-Private Partnership (PPP) agreements, which did not exist in the country before. The Ministry of Finance & Economic Cooperation (MoFEC) has finalised the first draft of the directive, which also identified the bidding procedures of the partnership and draws the strategic plans for the implementation of the projects. A team composed of five members was formed by the MoFEC four months ago to draft a directive and other legal frameworks, including manuals, for the implementation of the PPP proclamation, which was legislated by the parliament in February of 2018.
(Liilnna Kifle @mehrteab, Jan 2018)
As we are witnessing more and more tender announcements for Power Purchase Agreements (PPAs), news about the qualification rounds following the tender or negotiations by the Ethiopia Electric Power (EEP, a state enterprise that offtakes the energy generated by IPPs) to purchase electric power from private investors, one may ask what is the legal basis for all of these? So far the private sector’s involvement in the energy sector was limited to Engineering, Procurement and Construction (EPC) contracts. And it was just recently (on December 19, 2017), that the legal provisions regarding PPAs and IPPs come into practical applicability when the first PPA was signed between Corbetti Geothermal PLC and EEP for the Corbetti geothermal power project.