Industrial energy storage project financing options in Ethiopia 2030

Why is the energy sector important in Ethiopia?

As energy is the backbone of industrial development, public investment has focused on developing the energy sector. In addition, to achieve its goal of increasing power generation capacity of Ethiopia four-fold by 2030, the government has called for the participation of the private sector.

What mega-projects are under development in Ethiopia?

Other mega-projects under development include the electric-powered national railway, which covers 4,744 kilometers. In addition, Ethiopia aims to become an Eastern African Power Pool and export power to Kenya, Sudan, Tanzania and Djibouti—more than doubling electricity exports (from 2,803 GWH to 7,184 GWH) by 2030.

What is the future of electricity in Ethiopia?

Demand for electricity is rapidly increasing in Ethiopia—by 30-35% annually. The largest expected increase is projected to come from the industrial sector, with an estimated average annual growth of 11.6% from 2012 to 2030 (from 4.4 billion kWh in 2013 to 31.4 billion kWh in 2030).

How much electricity does Ethiopia use per capita?

On average, per capita electricity consumption remains low at less than 100 kWh per year, far below the average 500 kWh per capita energy consumption across African countries. The largest sources of energy consumption (about 87%) in Ethiopia remain traditional fuels. Demand for electricity is rapidly increasing in Ethiopia—by 30-35% annually.

Why do we need electric power in Ethiopia?

The opportunity to provide electricity to a large, growing, and unserved population. Total capacity of electric power generation in Ethiopia Planned capacity of electric power generation by 2030

How many people live without electricity in Ethiopia?

Approximately 55% of Ethiopia´s 116 million people live without electricity. It is estimated that 13 million households lack access to electricity and rely on traditional energy sources (charcoal, fuel wood, dung cakes, and agricultural residues), which are hazardous to health and the environment.