Exporting electricity, for Ethiopia, is surely becoming a profitable business and helps to establish itself as a major power hub in Africa. Since 2014, the country has provide prime attention towards exporting electricity to neighbouring countries such as Djibouti, Kenya and Sudan. It is also establishing grid links to South Sudan, Uganda, Rwanda, Tanzania and Yemen. Egypt has shown an interest to purchase electric power from Ethiopia. Selling electricity to both local and foreign beneficiaries, the country made about 2.6 billion Birr in the 2015 and 2016 fiscal year alone.
According to Today.ng, Ethiopia earned close to 33 million USD from electric power sales to Djibouti in nine months of the 2013/2014 budget year, that is from July 8, 2013 to March 7, 2014. As part of a cross-border effort to meet regional energy demand and limit increases in climate-changing emissions, Ethiopia planned to export renewable energy to more neighboring countries by 2018. It will be a major step in protecting the environment from bio-hazards.
Currently, Ethiopia is working to become top energy exporter in the continent by utilizing its waterfalls or rivers. Indeed, Ethiopia has the potential to generate 45,000 megawatts from hydropower alone. Thus, developing hydropower dams and other renewable energy sources, the country has still been making fruitful efforts to increase its generating capacity to 17,347mw by 2020. As scholars agree, exports of electricity account for over 7 percent of economic growth.
With its uncontested strength against political and social challenges, the country continues sustaining the development of the power sector. To achieve this goal, the country is constructing Africa’s largest hydroelectric dam project which has 6450 megawatts capacity.
Recently, the ministry of water, irrigation and electricity announced that Ethiopia has finalized the feasibility study conducted on the possibility of exporting power to Egypt. Ministry Public Relation and Communication Director Bizuneh Tolcha said that many east African countries signed agreement with Ethiopia to get electricity. Discussions are underway with Rwanda, Burundi, Tanzania, Zambia, Kenya and South Sudan on ways of commencing the supply of power.
According to Bizuneh, the country is currently selling 100MW power to Sudan, 80 MW to Djibouti and 10 MW to Kenya. Kenya and Tanzania has already agreed to get 400 MW power each. Hence, exporting electricity to such nations, Ethiopia is earning 80 million USD annually.
As electricity is a major player and the driver of socio-economic development, the government is aiming to develop a middle-income country by 2025. Although the contribution of Ethiopia to climate change can be considered as small, its commitment to motivate other countries to follow suit is exemplary. In this effort, Ethiopia will successfully eradicate poverty and ensuring mutual cooperation through the development of natural resources. Among other things, the Grand Ethiopian Renaissance Dam will, not only, raise nation’s power-generating capacity, it will also allow the people to meet our domestic needs and enable the country to mobilize the resources to neighboring countries. With no doubt, the project will play a major and decisive role in realizing the national efforts towards the eradication of poverty.
Consolidating fundraising activities and public mobilizations, the nation celebrated the 6th_year anniversary of the commencement of the project on the 2nd_of April at_Benshangul Gumuz State, Guba. Since the launching of the construction of the dam six years ago, the participation of the public toward the construction of the Dam was remarkable. For instance, though the total construction cost of the Dam is estimated at 80 billion Birr, 9.6 billion Birr has been collected so far from the the people. The remaining amount has been financed by the government. Now the construction of the dam exceeds 57 percent, and will be_the largest in Africa with an installed power generating capacity of 6450 MW.
When it will be fully operational, the project would create a capacity to build another such huge mega projects. The Dam would also demonstrate the country’s capability to engage in any development activity. To be sure, the current progress has proven that Ethiopia can do anything and realizes the psychology of ‘yes we can’. The Dam would play a crucial role in integrating neighboring countries through power and meet local demands.
Likewise, the other hydro, wind and solar energy projects are symbols of national self-reliance and instrument to battle against poverty and climate changes.
According to sources, the master plan of electricity and energy aims to boost power exports from 223MW a year now to at least 5,000mw. Ethiopia’s potential power production capacity from hydro as well as geothermal, wind and solar energy may be more than 60,000mw. That is equal to roughly half the total current installed capacity in Africa of 147,000MW. These ambitious plans have been noted as visionary by several reputable scholars, institutions and international media houses.
Indeed Ethiopia has been making huge investments in terms of hydropower generation capacity under its 5-years Growth and Transformation Plans (GTP I & II).
According to the performance report of GTP I, the total hydropower generation capacity of Ethiopia in 2005,was only 714MW and the total power generated was only 3,112 GWH. By 2010 the power generation capacity reached 2,000MW and the total power generated was 7,689 GWH. The length of power transmission lines across the country was only 8,380 km in 2005. But, by 2010 there were to 12,147 km power lines connecting electric power grids.
Similarly, the number of power distribution lines across the country increased from 25,000 km in 2005 to 126,038 km in 2010. As per the GTP, the length of distribution lines is expected to increase from 126,038 km to 258,038 kms.
The total number of registered electric power user households was less than 950,000 in 2005. But by 2010, it was more than 2 million. As per the GTP, it is expected that there will be 4 million registered households connected to electric distribution lines.
With all these works well underway, it is expected that the electricity coverage of Ethiopia will reach more than 75 per cent, thereby connecting Ethiopians farmers with the 21st century. Above all, the government has to continue investing in alternative energy sources to boost the exports of electricity to the whole African countries and beyond.
By Zelalem Girma
