By Matia Samuel and Ethiopian Press Foundation
March 20, 2024
Ethiopia earns more than $1 billion from electricity exports, media reports have revealed.
The Ethiopian Minister of Water and Energy, Habtamu Etfa, said the country managed to earn more than $1 billion from exporting electricity to neighbouring countries in only 18 months.
It stated that the earnings were registered during the months running up to the end of the country’s fiscal year 2015, based on the Ethiopian calendar.
Etfa said the performance confirmed the country’s thriving role as a regional energy power supplier, stimulating regional integration, and pointing out that there was a growing demand for Ethiopian electricity, as the country witnessed an annual increase of 15 percent.
“We have succeeded in supplying energy to Sudan, Djibouti and Kenya, praising the pivotal interconnection between the energy networks in Ethiopia and Kenya, which increases the possibility of exporting to South Africa through the energy complex in East Africa,” said Etfa.
He added, “Ethiopia is fortunate to be in a favourable position to provide clean and inexpensive electricity without harming the environment, which leads to escalating demand.”
Etfa revealed that 93 per cent of electricity in Ethiopia is derived from hydropower, and the country plans to expand exports to South Sudan.
“The country has made great strides at the local level, with 4.5 million customers connected to the grid in the past six months alone. However, challenges remain due to the dispersion of the population, with only 52 per cent of them currently having access to energy,” said the official
He said that the remaining 48 per cent living off-grid requires a coordinated push towards decentralised solutions. To bridge this gap, the ministry is actively implementing off-grid projects by harnessing solar, wind, biogas and geothermal energy while promoting clean cooking technologies.
In 2022, Ethiopian Electric Power, which is the country’s state-owned power company, signed an agreement to sell 100 megawatts to South Sudan for three years which was critical to satisfying electricity demand in South Sudan while also raising revenue for Ethiopia, with plans to expand imports to 400 MW gradually.
Numbers in Ethiopian power sales
-$1 billion made in exports
-15% annual earnings increase
-93% of electricity from hydropower
-4.5 million customers connected to grid
-100 MW to be exported South Sudan