Ethiopia - Power Sector Report

  • ID: 3330397
  • Report
  • Region: Ethiopia
  • SWOT Africa
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This report provides a comprehensive industry profile, analysis and outlook of Ethiopia’s power sector. Ethiopia’s installed capacity amounts to 2,300 Megawatts (MW) to serve its population of almost 95 million people. The country has little experience with private sector-led energy projects. Its energy production deficit largely restricts growth in key areas of Ethiopia’s economy. The government has indicated that it intends to add around 8,000 MW in the next few years, to reach the 10,000 MW by the end of 2015. Capacity additions between 2013 and 2020 will be dominated by hydro power and renewable energy, mainly wind. There is a substantial amount of existing untapped hydropower potential in Ethiopia. The country aspires to be a regional exporter of energy.

The report provides a SWOT analysis, full overview of the power sector and its segments with a focus on the sector’s growth and value. It analyses the country’s thermal (e.g. gas and oil) and renewable energy sources including solar (photovoltaic) energy and wind energy. It analyses the sector’s potential, scrutinizes the country’s energy security, its electricity supply and demand structure. It gives and overview of the national electrification program, as well as regional interconnection. It summarizes recent developments in the sector including the major projects, companies and investors. It outlines the main factors driving growth in the sector, as well as gives details on capital and financing. The Report explains the sectoral policy and regulatory environment in the country and provides an assessment of the risks and challenges in the sector for domestic and foreign investors. Finally, it provides market trends and outlook.

The report draws on national and international data, statistics, media reports and industry insights. It is useful to domestic and international investors, policy-makers, businesses and research institutions in understanding investment opportunities, risks and challenges, legal and business environment in Ethiopia.
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1. Ethiopia: Country Brief

2. Sector Overview
- Industry profile
- Ethiopia as Regional and African Power-House
- Electricity supply
- Growth and Transformation Plan
- Energy Security
- Energy Consumption
- Energy Demand

3. Recent developments

4. Products and Markets
- Thermal energy
- Biomass
- Renewable energy:
- Hydro energy
- - Geothermal energy
- - Wind energy
- - Solar energy
- - Waste - to - energy

5. Energy Infrastructure
- Generation Infrastructure
- Transmission Infrastructure

6. Regional Interconnection & Integration

7. International Trade

8. Leading Companies
- Ethiopian Electric Power Corporation (EEPCo)

9. Drivers of Growth

10. Capital and Financing

11. Policy and regulatory environment
- Growth and Transformation Plan
- Priorities of the Growth and Transformation Plan
- Exports: Electricity Master Plan
- Private Investment in energy sector
- Classification of Hydro Systems
- Public-Private Partnerships (PPP)

12. Foreign Investment
- Foreign Investment in Ethiopia
- Foreign Investment in Energy Sector
- Government Policy on Foreign Investment
- Incentives for Foreign Investors

Risks & Challenges

List Of Figures:
Figure 1: Ethiopia - Country statistics
Figure 2: Ethiopia’s Exports and Imports
Figure 3: Volume of Electricity Production by Type 2008-2014
Figure 4: Ethiopia's Energy Mix 2013/2014
Figure 5: Electricity Generation in Ethiopia 2013-2014
Figure 6: Electricity Generation in the Inter-Connected System (ICS) and Self-Contained System (SCS)
Figure 7: Electricity Consumption 2000-2018
Figure 8: Power consumption in Ethiopia in 2012
Figure 9: Demand for Electricity 2000-2030
Figure 10: Cumulative Installed Thermal Capacity
Figure 11: Cumulative Installed Renewable Capacity
Figure 12: Hydro Power Plants in Ethiopia
Figure 13: Upcoming geothermal power projects in Ethiopia 2013-2020
Figure 14: Upcoming Wind Projects in Ethiopia
Figure 15: Upcoming Transmission Projects
Figure16: Imports of petroleum oils and crude to Ethiopia 2005-2012
Figure 17: Volume of petroleum products imported 2013-2014
Figure 18: Trends in the Volume of Imported Petroleum Products 2008-2014
Figure 19: Value of petroleum products imported, 2013-2014
Figure 20: Trends in the Value of Imported Petroleum Products 2008-2014
Figure 21: Classification of Hydro Systems
Figure 22: Summary of PPP Models in Ethiopia
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Ethiopia has vast hydropower potential (estimated at 45,000 MW) and has ambitions to transform itself into a regional exporter of energy. Ethiopia’s government intends to add around 8,000 MW in the next few years, to reach the 10,000 MW by 2015. Renewable sector, especially wind and geothermal, is projected to deliver the highest growth and benefit from an increased foreign investment. The majority of investment opportunities are related to dam construction and the associated infrastructure. Most of the government’s focus is on the hydropower sector and increasing transmission and distribution (T&D) coverage. Ethiopia has emerged as one of Africa’s success stories in reducing poverty and attracting foreign investment. It will be among the fastest growing economies in Sub-Saharan Africa between 2014 and 2017.


Financing limitations and the threat of drought pose risks to investments in Ethiopia’s energy sector. Ethiopia’s large and dispersed rural population makes the supply of electricity prohibitively expensive to remote rural areas. The rate of extraction of biomass results in increased environmental degradation. Obstacles to growth include the persistent financing constraints facing public investment. The Government lacks experience with private sector-led energy projects. Ethiopia dwindles at the bottom of global business rankings. State-owned enterprises remain the principal beneficiaries of domestic credit extension.
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- Ethiopian Electric Power Corporation (EEPCo)
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