usaid/naruc/ ekt- east africa regional regulatory 1st
TRANSCRIPT
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USAID/NARUC/ EKT- East Africa Regional Regulatory
1st Partnership Exchange:
ETHIOPIA POWER SECTOR OVERVIEW
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Presentation Outline 2
Country Overview
Power Sector Overview
Government policy highlights &-
Regulatory framework overview
Concluding Remarks
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Country Overview 3
Federal Democratic Republic of
Ethiopia .
The Federal State is composed of 9(Nine)
regional State and 2 Cities under the direct
oversight of the Federal Government.
Map
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Country Overview cont… 4
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Country overview con--- Regional States Map 5
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Country Overview cont. 6
Location: Eastern Africa, west of Somalia Lies within 15 degrees North of the Equator,
Terrain: high plateau with central mountain range
divided by Great Rift Valley
Size; Total: 1.127,127 sq km water: 7,444 sq km land: 1,119,683 sq km
Altitude extremes: lowest point: Denakil Depression-125 meter below sea
level
highest point: Ras Dejen 4,620 meter above sea level
Population about 86 Million • Rural population: 85% and • Urban population:15%
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Country Overview cont. 7
Cool Zone -Areas above 2,600 m (8,530 ft)
Temperate Zone -Areas between 1,500 m (4,920 ft)
and 2,600 m (8,530ft)
Hot Zone -Areas below 1,500 m (4,920 ft) with both
tropical and arid conditions
Rainy season lasts from mid-June to mid-September
(longer in the southern highlands) preceded by
intermittent showers from February or March;
remainder of the year is generally dry
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Ethiopian Power Sector overview
Energy Supply
Ethiopia’s domestic energy resources are mainly
renewable consisting of :
Hydropower (45 GW),
Wind (1,350 GW), considering areas more
than 7.5m/s at 50 meters above ground
level.
Geothermal (5 GW),
Solar energy (5.5 kWh/m2.d)3
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Bioenergy (96 Mtons yield/y)
known reserves of:
Coal (260 million ton) and
Natural gas (4.7TCF).
The country relies heavily on bio-
energy resources to meet its energy
demand.
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Current development plans are
expected to shift the
characteristics of energy supply
and use in Ethiopia. Supply side
plans include increasing power
supply capacity by four fold by
2015.
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Energy Demand
Domestic energy consumption in
Ethiopia is estimated at 1,300PJ.
The Residential sector accounts for
93% of the total energy consumed
in Ethiopia
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The main energy requirements in
the residential sector are for
cooking and baking.
The residential sector consumes
37% of the total electricity
supplied.
Per-capita consumption of
electricity is about 48.2 kWh/year.
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The industry sector consumes 37%
of the electricity supplied.
The commercial services and the
social services/health facilities,
educational facilities water supply
services etc../ together accounts
26% of the electricity supplied.
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Currently the demand side
plans for introduction of
extensive rail network, both
inter city and intra city, which
will introduce demand for
electricity from the transport
sector.
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Ethiopian Power sector overview cont.
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Power companies:
The Ethiopian Electric Power
and
Ethiopian Electric Utility
are the Enterprises involved
in the power sector at large.
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---- overview cont. 16
EEP and EEU are established by
Council of Minister regulation
no.302/2013 and 303/2013
respectively. These companies
emerged to exist as a result of
restructuring the form vertically
integrated company EEPCO/ Ethiopian Electric Power Co-operation /
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EEP is in charge of among others:
Power generation, Transmission and
Substation construction and upgrading
Electricity generation and Transmission
operational and maintenance activities
Lease electricity transmission line as
required
Sell bulk electric power
Undertake Universal electric access works
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overview cont….
EEU on the other hand is in charge of
among others;
Construct ,maintain and administer electric
distribution network
Purchase bulk electric power and sell to
electric energy to consumers
Initiate electric tariff, and upon
approval implement the same.
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Government Policy The Ethiopian Energy Policy reveals that, its
objectives is to:
• Timely supply;
• Transform traditional energy;
• Provide dependable and economical
energy supply;
• Prevent/mitigate negative
environmental impact;
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Expand power generation,
transmission & distribution;
Promote private sector in commercial
energy;
Promote energy efficiency at:
production, transmission,
distribution and consumption level.
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Ongoing projects under the GTP of Ethiopia
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Ethiopian Government has developed a five year
Growth and Transformation Plan.
The strategic directions during the plan period are:
development of renewable energy,
expansion of energy infrastructure, and
creation of an institutional capacity that can
effectively and efficiently manage such energy
sources and the infrastructure
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Programs 22
In order to meet the Government’s GTP various
programs including:
Electric power generation
Electricity transmission lines construction
The power distribution and expansion
The Universal Electrification Access
Programs are under way.
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Energy relevant targets (access, capacity, generation,
energy security)
2010 & Targets Unit Base - 2010 Target - 2015
Power – on grid
Installed power MW 2,000 8,000
Distribution lines Km 126,038 258,038
Transmission lines
(66kV and above) Km 11,537 17,053
Customers No. (million) 2.0 4.0
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Power – off grid
Solar home and
institutional systems No. (million) < 0.02 0.15
Solar lanterns No. (million) < 0.02 3.0
Other programs
Solar thermal systems
(cookers, heaters) No. NA - 13,500
Liquid biofuel
production Liters (million/yr) 7.0 1,630
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Liquid biofuel roduction
Liters (million/yr) 7.0 1,630
Clean cook
stoves No.(million) 7.0 16.00
Access to electricity % 15 75
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Regulatory Overview
ETHOPIAN ENERGY SECTOR STRATIGIC DIRECTION
The Regulatory framework will
be effectively enforced.
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ETHIOPIAN ENERGY AUTHORITY/EEA/
ORGANIZATIONAL FRAMEWORK
under construction
The law provides the framework to
consider:
Board, General Director, Deputy General
Director and necessary staff
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Legal Framework for EEA EFDR- Constitution
Energy Proclamation No.810/2013
Council of Ministers Regulation to Establish EEA No.
308/2014
Council of Ministers Regulation No. ---/---- under
construction
Bylaws- under construction
Legal Framework for Delegated functions to EEA
Investment Proclamation No .769/2012.
Council of Minister Regulation on Investment no.270/
2012
Proclamation no.686/2002
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Core functions EEA as stipulated under
Energy Proclamation no.810/2013
Regulation :
Technical – Inspection, Quality
supervision and control licensee’s and
competency certificate holders
Economic – Recommend viable &
Sustainable tariff for grid and Approves
off-grid Tariff
Legal- Settlement of Disputes
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Licensing :
Issue and Renew License for : Generation,
Transmission, Distribution and Sale,
Import/Export of Electricity
Provide own consumption production permit
Issue and Renew Competency Certificate
Undertake Energy efficiency and Conservation
Activities :-
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Establish and Administer Energy Efficiency and
Conservation fund.
Develop and execute national energy efficiency and
conservation strategies and program’s
Regulate Energy efficiency and Conservation Activities
through various means application, like;
Energy efficiency labeling code
Minimum energy efficiency standard
Mandatory energy Audit
Voluntary agreement
Etc…
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Delegated functions to EEA
To Issue Electric Investment Permit
To Issue Electric and Electric Related
Business Competency Certificate
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Strength and Weakness of the Power sector
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Strength Existence of Policy direction to curve the gap
between demand and supply of power
Government political and leadership
commitment to develop modern energy sources
Existence of potential electric energy for
development at large
Re-structuring action taken on power sector COMPANY
Activities underway to reinforce the regulator.
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Weakness
Lack of technical - know Skill
Limited soft and hard infrastructure
capacity development
Lack of sustained and continuous
human capital development
program
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Limited practical training
opportunity in the area of:
Economic regulation
Governance regulation
Substantive Regulation and
Energy efficiency and
conservation activities
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Upcoming 36 The Development of GTP 2 is
underway
IPP’s are highly motivated to take part
in the investment climate of the power
sector in Ethiopia
The cropping up of Power Trade
interest between and among nations
New regulation is under construction
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Conclusion 37
The prevalence of high political
commitment supported by strategic direction
and law to enforce national regulatory
system.
The existence of an effort underway to
materialize the regulatory enforcement
bylaws and organizational framework
development.
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The recognition of the Ethiopian government that the role of the private sector and foreign investment is critical in the development effort of the country.
Cross boarder Power trade interest between and among nations
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Highly demands to equip the power sector with required soft and hard infrastructure development so that the legal and institutional framework already in place can render the required service as per their establishment intention/purpose.
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MANY THANKS FOR YOUR ATTENTION
ETHIIOPIAN ENERGY AUTHORITY
Email: [email protected]
WWW.ethioenergauthority.gov.et