Executive Summary:
Ethiopia has abundant renewable energy resources and has the potential to generate over 60,000 megawatts (MW) of electric power from hydroelectric, wind, solar and geothermal sources. As a result of Ethiopia’s rapid GDP growth over the previous decade, demand for electricity has been steadily increasing. Despite Ethiopia’s energy potential, the country is experiencing energy shortages as it struggles to serve a population of over 105 million people and meet growing electricity demand which is forecast to grow by approximately 30% per year.
Current Market Needs:
Ethiopia’s Growth and Transformation Plan (GTP) outlines a 15 year plan with three 5-year phases to transform Ethiopia from a developing country to a middle income country by 2025. Under GTP I (2010-2015), the goal was to increase the installed generation capacity from 2,000 MW to 10,000 MW primarily through hydro power projects. With some of those projects still under construction, the country currently has approximately 4,500 MW of installed generation capacity. Under GTP II (2015-2020) the goal is to increase installed generation capacity an additional 5,000 MW by 2022. Ethiopia Electric Power (EEP), the state-owned power generation agency is charged with maintaining more than fourteen hydropower and three wind power plants located in different parts of the country. The Government of Ethiopia has focused on the construction and expansion of various power generating projects to deliver reliable electricity. Approximately 90% of the installed generation capacity is from hydropower while the remaining 8% and 2% is from wind and thermal sources respectively. The hydro dominated systems have been severely affected by drought, and the Government of Ethiopia (GOE) is now diversifying the generation mix with other sources such as solar, wind and geothermal that will result in a more climate-resilient power system.
Recent Market Trends:
Apart of Government of Ethiopia plan to pursue on PPP projects, there are four solar projects tendered out in 2019 by the PPP office under Ministry of Finance: Mekele Solar (100 MW), Humera Solar (100 MW), Welenchetti Solar (150 MW), and Weranso Solar (150 MW). Another two remaining solar PPPs, Metema Solar PV and Hurso Solar PV, were also tendered out as part of an IFC Scaling Solar phase 2. A total of 14 power related projects: 5 hydro, 2 scaling solar, 6 solar and 1 substation and transmission projects are listed as part of PPP projects which Government of Ethiopia would like to work.
Competitive Landscape:
Solar, wind and off grid.
Best Prospects for U.S. Exporters:
Participating on Solar PPP, wind, transmission, substation and off grid projects.
Market Entry:
Competitive international tender will be announced for all projects.
Regulations / Registration Process:
Competitive international tender will be announced.
Technical Barriers & Tariffs:
There are no technical barriers.
Procurement & Tenders:
There are 180 off-grid projects which Rural Electrification Program under Ethiopian Electric Utility expects to tender out before end of 2020. There is also a plan by Ethiopian Electric Power to float tenders on wind projects in the near future. These wind projects will be supported by IFC and WB. 132-400 kw transmission and substation project tenders are also expected to float before end of March 2020.
Upcoming Trade Events:
No events are planned at this time.
