1. Engaging the private sector
Annual Event
Abidjan, Côte D’Ivoire
3 – 5 October 2017
Financing LEDS implementation
Engaging the private sector
Tesfaye Hailu

2. Ethiopia – Country Profile
Population – 100 M+
Grid connected – 31%
Rural Scenario
Rural Dwellers - 80%
Grid Connected – 10%
Lanterns – 16%

3. Ethiopia Energy – Current vs Planned
Hydro - 13,817MW
Wind MW
2025
2015
Solar – 300MW
Geothermal – 577 MW
Reserve Fuel - 509MW
4,180MW
17,208 MW
Waste – 50 MW
Sugar – 474 MW
Biomass – 257MW

4. Renewable Energy Generation Plan in Ethiopia by 2025

5. Off-Grid Opportunities in Ethiopia – Targets set by 2020
Solar Lanterns – 3.6 M
Highly commercial and private sector driven business.
Government has been expressing strong demand for reliable suppliers
Non-state actors foster strong engagement with private sector for solar systems for productive use in off-grid areas
SHS - 400,000
High government support, large applicability, and strong attractiveness for private sector
Support package prepared by the government’s off-grid investment plan to bring in as much private sector as possible
Mini Grids – 3,600
High Government buy in off-grid government expansion plans – Schools, Health Centers, Irrigation Systems, Water Supply Systems, Telecom Towers

6. Trends - Rural Ethiopia – Energy Source

7. Ethiopia Energy – Potential vs Exploited
Resource
Unit
Exploitable Reserve
Exploited in 2015
Hydropower MW
45,000
<5%
Solar/day
kWh/m2
Avg. 5.5
<1%
Wind GW
1,350
Geothermal
7000
Agricultural waste
Million tons
15-20
30%
Natural gas
Billion m3
113 0%

8. The Energy Africa Compact
A voluntary agreement signed between the Government of Ethiopia and the UK
Coordinated support to accelerate the development of the household solar market in Ethiopia.
Increased involvement of the private sector in the provision of Decentralised Renewable Energy through various models
Outlines 11 policy action points to facilitate the implementation of the Energy Africa Compact

9. Key Areas Critical to Developing Off-Grid Solar Market
Technology
Financing crunches
Investment Barriers
Capacity Constraints
The GoEs commitment to off-grid rural electrification does not match that of on-grid electrification.
Lack of availability of long term grid expansion plans
Unclear jurisdiction involving organizations in the business licensing, quality verification and taxation process
Reliability of systems
Customization to consumer requirements
Finance for investment, operations and for consumers
Tax reductions or removal for off-grid systems;

10. Key areas for improvement
Sharing knowledge of the Government’s grid expansion
Reduces the uncertainty preventing private sector to invest in a specific location
Parallel formalization and streamlining of institutions and regulations involved in the import process
Removes the hurdles behind the import barriers
Adoption of third-party verifications through PVoC
Reduces the capacity issues prevalent in the Standard Authority
A “Green Line” declaration to fast track the custom clearance procedures
Fast tracks Customs clearance – reducing payment for
Provision of Tax-Free privileges for PVoC certified equipment's
Entices the private sector to import reliable products
Renders an opportunity to provide competitive off-grid products
Creating incentives for local manufacture
Tax free Holidays, tax free import of capital goods and equipment, reduces import barriers, job creation, and demand for hard currency
Establishment of associations to build capacity amongst local investors
Appropriate conformity standards to be defined in line with the local context
Supporting affordable financing options
Paygo models

11. Thank You 