Ethiopia has made $81.6 million from the sale of electricity to Djibouti and Sudan in a year which runs from July 8, 2017-July 7, 2018, according to a statement on Friday by the Ministry of Water, Irrigation and Electricity.Despite a plan to earn $86.62 million from the export of 1.512 billion kilowatt hours of electricity, the country secured $81.6 million by exporting 1.466 billion kilowatt hours of electricity.
According to the Ministry, the country earned $47.5 million from electric power sales to Sudan, while export to Djibouti generated $34.1 million. According to the World Bank, Ethiopia has the second highest available energy generation capacity in Sub-Saharan Africa, with nearly 100 percent coming from renewable energy generation (mostly hydro power), and vast and mainly untapped solar, wind, and geothermal clean energy resources.
Electricity Tariff- is the rate at which electrical energy is supplied to a consumer. Electricity tariff (sometimes referred to as electricity pricing or the price of electricity) varies widely from country to country, and may vary significantly from locality to locality within a particular country. There are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns.
In standard regulated monopoly markets, like the case in Ethiopia, electricity rates typically vary for residential, commercial, and industrial customers. Prices for any single class of electricity customer can also vary by time of day or by the capacity or nature of the supply circuit etc. If a specific market allows real time dynamic pricing, a more recent option in limited markets to date typically following the introduction of electronic metering, prices can even vary between times of low and high electricity network demand.
(Xinhua, 01 March 2018)
Ethiopia earned 35.06 million US dollars from energy exports to Sudan, Djibouti and Kenya in the first six months of the current Ethiopian Fiscal Year, which started on July 9, 2017, an Ethiopian official said on Wednesday.
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.