USAID/NARUC/ EKT- East Africa Regional Regulatory. 1 st Partnership Exchange: ETHIOPIA POWER SECTOR OVERVIEW
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1 USAID/NARUC/ EKT- East Africa Regional Regulatory 1 st Partnership Exchange: ETHIOPIA POWER SECTOR OVERVIEW
2 Presentation Outline 2 Country Overview Power Sector Overview Government policy highlights &- Regulatory framework overview Concluding Remarks
3 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
4 4 Country Overview cont
5 5 Country overview con--- Regional States Map
6 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%
7 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
8 Ethiopian Power Sector overview 8 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/m 2.d) 3
9 Bioenergy (96 Mtons yield/y) 9 known reserves of: Coal (260 million ton) and Natural gas (4.7TCF). The country relies heavily on bioenergy resources to meet its energy demand.
10 10 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.
11 Energy Demand 11 Domestic energy consumption in Ethiopia is estimated at 1,300PJ. The Residential sector accounts for 93% of the total energy consumed in Ethiopia
12 12 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.
13 The industry sector consumes 37% 13 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.
14 14 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.
15 Ethiopian Power sector overview cont. 15 Power companies: The Ethiopian Electric Power and Ethiopian Electric Utility are the Enterprises involved in the power sector at large.
16 ---- 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
17 EEP is in charge of among others: 17 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
18 overview cont. 18 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.
19 Government Policy 19 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;
20 Expand power generation, 20 transmission & distribution; Promote private sector in commercial energy; Promote energy efficiency at: production, transmission, distribution and consumption level.
21 Ongoing projects under the GTP of Ethiopia 21 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
22 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.
23 Energy relevant targets (access, capacity, generation, energy security) & Targets Unit Base Target Power on grid Installed power MW 2,000 8,000 Distribution lines Km 126, ,038 Transmission lines (66kV and above) Km 11,537 17,053 Customers No. (million)
24 24 Power off grid Solar home and institutional systems No. (million) < Solar lanterns No. (million) < Other programs Solar thermal systems (cookers, heaters) No. NA - 13,500 Liquid biofuel production Liters (million/yr) 7.0 1,630
25 Liquid biofuel roduction 25 Liters (million/yr) 7.0 1,630 Clean cook stoves No.(million) Access to electricity % 15 75
26 Regulatory Overview 26 ETHOPIAN ENERGY SECTOR STRATIGIC DIRECTION The Regulatory framework will be effectively enforced.
27 ETHIOPIAN ENERGY AUTHORITY/EEA/ 27 ORGANIZATIONAL FRAMEWORK under construction The law provides the framework to consider: Board, General Director, Deputy General Director and necessary staff
28 Legal Framework for EEA 28 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
29 29 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
30 30 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 :-
31 31 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
32 Delegated functions to EEA 32 To Issue Electric Investment Permit To Issue Electric and Electric Related Business Competency Certificate
33 Strength and Weakness of the Power sector 33 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.
34 Weakness 34 Lack of technical - know Skill Limited soft and hard infrastructure capacity development Lack of sustained and continuous human capital development program
35 Limited practical training 35 opportunity in the area of: Economic regulation Governance regulation Substantive Regulation and Energy efficiency and conservation activities
36 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
37 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.
38 38 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
39 39 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.
40 40 MANY THANKS FOR YOUR ATTENTION ETHIIOPIAN ENERGY AUTHORITY
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