IEEJ : July 2011

Energy Policy of Ethiopia
Ministry of Water and EnergyCountry ReportJapan International Cooperation Agency
Tokyo International Center

July, 5, 2011

IEEJ : July 2011

Outline Background Energy situation in Ethiopia
 Energy resources potential
 Energy resources exploitation potential
 Estimated Fuel wood supply and demand(million M³)
 Energy supply: Fuel use by sector

 Energy sector issues
 Objectives and rationales of energy policy Rationales of energy policy Objectives of energy policy
 Priority of the energy policy Reasons for focus on renewable energy

IEEJ : July 2011

continue Energy development
 Development of hydropower Development of solar energy Wind Bio‐fuel Biogas Energy efficiency and conservation measures
 Shortcoming of the policy Participants interest areas in the training

IEEJ : July 2011

Background
Ethiopia is located in the Horn of Africa, with a territoryof 1.04 million sq. kilo meters. Biomass fuels (fire wood,agricultural and animal wastes) and hydropower, isconsidered the main indigenous energy sources inEthiopia.
Biomass fuels are the principal energy sources; whichareused mainly for cooking in household. In Ethiopia
biomass energy covers over 90% of the total energy
consumption as it is available for and affordable tomajority of the people.

IEEJ : July 2011

continue
Hydropower contributes significantly to the electricgeneration; 1843 mega watt (MW), representing about
90% of the total electric city generation and the rest is
From others, such as, solar, diesel and geothermal.
Different studies indicate that, Ethiopia has about
45,000MW hydropower potential; and the land scope/mountains feature/ and hydrological conditions
enables the country to generate hydropower at lower
costrelatively.

IEEJ : July 2011

Energy situation in Ethiopia
Energy resources potential
Energy resource

Exploitable potential

Woody biomass

767 million tons

Crop residue + animal waste

38 million ton/yearhydropower

45,000 MW

solar

5‐6.5 kwh/M²/day

wind

3.5 – 5.5 M/S

Geothermal

5,000 ‐ 7,000MW

coal

70 million tons

Natural gas

7. TCF (Terra Cubic Feet)IEEJ : July 2011

continued
Energy resources exploitation potential

 Hydro little exploited ‐4.4%
 Biomass ‐uneconomical exploited Solar, wind, geothermal ‐ contribute almost nothing
to the energy economy
 Coal and natural gas ‐ contribute noting to theenergy consumption (share)IEEJ : July 2011

continued
Estimated Fuel wood supply and demand(million M³
year

DemandSustainablesupplyDeficit

1997

52.9

11.7

41.2

2000

58.4

11.2

47.2

2005

68.5

10.4

58.1

Source: Ethiopian forestry action plan, 1996

IEEJ : July 2011

continued
Petroleum products supply and consumption (tons)
year

total supply T

consumption

2007/08

1,881,272

1,880,308

2008/092,013,089.349

na

2009/102,035,265.445

naIEEJ : July 2011

continued
Energy supply:

The energy sources of Ethiopia is classified in two big blocks; traditionaland modern energy.
a. Major supply sources

Minor supply sources

Traditional (>90%)

Modern (<10%)

Biomass (wood, charcoal, cow dung,agricultural residue)

Electricity

Petroleum products

a. utilization

Utilization

Inefficient/much loss (over 85%)

Relatively efficient /significantly losses eg.
Electricity over 10%

IEEJ : July 2011

continue
Fuel use by sector
SectorEnergy/Fuel typebiomass

petroleum

Electricityhousehold

98.6

1.1

0.3

service

94.3

1.3

4.4

industry

75.7

17.3

7.0

transport

100

agriculture

100

IEEJ : July 2011

Energy sector issues
 Biomass fuels have become difficult and time consuming
to collect in rural areas; and more expensive in urbanareas.
 Employing energy wasteful three stone open fires coupledwith the fast population grows aggravated the biomass
fuel crisis.
 Over exploitation of natural forest resources for firewood;
results climate change, loss of biodiversity andproductivity.
 The impact of increasing foreign currency spent forimportation of petroleum products on national economy
and foreign exchange availability;

IEEJ : July 2011

Continued
 The need to provide access to modern energy for therural peoples/to shift from traditional to modernenergy sources/ which demands heavy investment interms of foreign currency and local resources.
 Lack of access to modern energy in rural areas
 Low efficiency of energy utilization in all sectors
 An increasing investment needs for modern energy

Objectives, rationales & priorities
of energy policy
IEEJ : July 2011

Ethiopia has energy policy document drafted in 1994.
The policy document has encouraged the use ofindigenous resources and renewable energy.
Now a day, Ministry of Water and Energy of Ethiopia isan organization responsible to development of energy
resources, implementation strategies, polices, sector
laws ….

IEEJ : July 2011

Continue
Rationales of energy policy

 To develop and utilize the existing potential resources on thebasis of overall development strategy of the country;
 To promote the development of renewable/alternative energy
sources and technologies to secure energy supplies and reduce
the use/dependency of fossil as well as traditional energy
resources;
 To reduce unnecessary losses of energy resources and to ensurethat energy is efficiently utilized;
 To support other economic sectors to meet their development
objectives by putting in place a clearly defined energy policy;
and To develop the efficiency and capacity of the energy sectors for
improving implementation capabilities of the energy
development program of the country.

IEEJ : July 2011

Continue
Objectives of energy policy
 To ensure sustainable and a reliable energy supply at theright time and affordable price, to support thedevelopment strategy of the country and create access tomodern energy;
 To remove problems faced in the development andutilization of energy resource, and give priority to thedevelopment of indigenous energy resources;
 To set guidelines and strategy for the faster development
and supply of energy;
 To increase energy utilization efficiency and reduce energy
waste; and To ensure that the development and utilization of energy
is friendly to the environment.

IEEJ : July 2011

Continued
Priority of the energy policy
 The development of hydropower resources is thepriority focus of the government for modern energy
supply, due to availability of high potential ofhydropower suitable to generate electricity at lower
cost relatively;
 Energy mix is encouraged for supply diversification,and renewable energy such as solar, wind andgeothermal are to be developed given their costcompetitiveness;
 To take appropriate energy policy measures to achievea gradual transition from traditional to modern fuels;

IEEJ : July 2011

Continued
 To set issues, and publicize standards and codes which
will insure that energy is used efficiently;
 To develop human resources and establish competentenergy institutions; To provide the private sector with necessary support andincentive to participate in the development of thecountry’s energy resources; and To pay due and close attention to ecological andenvironmental issues during the development of energy
projects.

IEEJ : July 2011

Continue
Reasons for renewable energy A large segment of the population is still without modern
energy services; thus, demand is expected to grow rapidly in thefuture; Suitable for decentralized application;
 Non‐renewable energy resources are limited in Ethiopia;
whereas, renewable energy availability is relatively high; The contribution of renewable energy to the total energy use isstill too low.
 To save hard currency, that needs to import petroleum/fossilfuels
 To increase energy security in diversifying the energy supply; To minimize environmental degradation/environment‐friendly

IEEJ : July 2011

Energy development
Ethiopia is imported fossil fuel fully for transportationand to some extent for household cooking and lighting
energy needs. Economic growth of the country results
toincreasing this and other types of energy use. To reducethe challenges and to moderate the growth of energy
demand, the Government of Ethiopia is looking forrenewable/alternative energy development, such ashydropower, geothermal, bio‐fuel, solar, wind.

IEEJ : July 2011

Continued
Development of hydropower The economy of the country grows by 11% annually for thelast 5 years. The development of countries economy
demands high energy.
 Thus, the electric power consumption increased about
25% annually with emerging economies of the country.
 To meet this energy needs, only for the last three years thegovernment is undertaken a construction of three new
power plants with generation capacity of 1180 MW; and Ethiopian Government is planning to enhance the current
2,000MW generation capacity and 41% access to electricity
to 10,000MW and 75% respectively in the next five years ofgrowth and transformation period.

IEEJ : July 2011

Continued
Power generation projects (2011‐2015 physical years):No.

Projects

Sourcesenergyof Installedcapacity MW

status

14

hydro

7471

Under
construction

27hydro1320

committed

31

wind

120

Under
construction

46wind752

committed

51geothermal

70

committed

63

Co‐generation/sugar factory

104

committed

IEEJ : July 2011

Continued
Development of solar energy The Government of Ethiopia looking for thisalternative energy sources to address the energy
needs of the rural peoples living in scattered villages.
 Thus, several measures and techniques have been
employed to implement this alternative energy
sources; such as duty free importation for PVtechnology.
 Solar energy is currently used to electrify public
sectors and installing solar home system in rural areas,
where there is no access to hydropower.

IEEJ : July 2011

Continued
WindThe country has exploitable potential of 10,000 MWof wind energy. Currently 120 MW plant is being
constructed in the northern part of the country.
Wind speed measurements from metrologicalservice – Ethiopia; as
Source: A.A University, faculty of technology, study offeasible options for rural electrification in Ethiopia
final report part II, August 2001.

IEEJ : July 2011

Continuedstation

V0 (m/s) at 2m AGL

V’ (m/s) at 20m AGL

Addis Ababa

3.9

7.0

Awash

3.8

6.9

Dire Dawa

3.6

6.5

Debre Ziet

2.9

5.2

Gode

3.3

5.9

Gondar

4.27.6

Gore

2.9

5.2

Jijiga

3.2

5.8

Jimma

3.2

5.9

Kebrri Daaher

3.1

5.6

Mekelle3.5

6.3

Neghelle

3.4

6.1

IEEJ : July 2011

ContinuedBio‐fuel To reduce petroleum imports, government of Ethiopia
is started to produce ethanol from sugar factory andblend it with gasoline.
 The expansion plan of existing sugar factories anddevelopment of the new ones in the next five years
the production capacity of ethanol may reach 181
million liters per year.
 Beside to production of ethanol, the government ofEthiopia is planning to establish Cogeneration
schemes at sugar factory.

IEEJ : July 2011

ContinuedBiogas

 Ethiopia has around 27 million cattle; principally
sufficient to provide feedstock for two millionfamily size biogas digester.
 Up to 2015 physical year, Ministry of Water andEnergy planned to introduce 25,000 domestic and1,000 institutional biogas digesters for generationof cooking energy and largely improved fertilizers.

IEEJ : July 2011

Energy efficiency and conservation measures
To reduce unnecessary energy wastage, it is necessarytoadopt energy conservation and efficiency measures inallsectors. Some of the measures need to be taken:‐ To give more focus on improving the efficiency of
existing energy endues devices to use energy
resources efficiently;
 Formulate an enforcement policies and regulations; inorder to promote energy efficiency and conservationin all sectors.

IEEJ : July 2011

Continued
Some of the measures that had been taken were:
Biomass energy, which covers the majority energy
consumption of the country, is used in a very wastefulway. Highly dependence and inefficient utilization of
biomass energy have resulted in depletion of forest
resources in Ethiopia, while the use of energy wasteful
three stone open fire stove has been linked to indoor
air pollution and poor health.

IEEJ : July 2011

Continued
 To minimize this effect, through the development of fuelsaving stoves (Mirt & Gonzie …); conservation of biomass
resources have been success fully implemented. In past
five years period of time about three million fuel saving
biomass stoves were introduced throughout the country.
 In the coming five years (2011 – 2015 physical years),
Ministry of Water and Energy is planning to enhance thedissemination figure of fuel wood energy saving stoves tonine millions.
 Dissemination of 10,000 Mirt stoves means: Fuel wood saving of up to 6,000 tons per annum; A considerable reduction in net carbon emission, because
less wood burnt; …

IEEJ : July 2011

Continued
Compared to traditional three stone open fires:
Gonzie stove about 64% savingCommercial Mirt
stove 70% saving

Mirt stove has a saving of about 50%

IEEJ : July 2011

Continued
 To minimize electricity losses, the government ofEthiopia is started to change incandescent lumps andsubstitute with compact florescent lump (CFL).

IEEJ : July 2011

Shortcoming of the policy Shortage of qualified person for formulating proper
policies for the various energy sub‐sectors;
 Insufficient assessment of energy resources andtechnologies; and Lack of timely updating

IEEJ : July 2011

Participants interest area in this training: Energy policy and strategy formulation
 Energy demand and supply projection techniques andmethodologies
 Designing an enforcement policy and regulations, topromote energy efficiency and conservation.
This will help us to recognize possibility of improving
the efficiency of existing energy utilization and design
sustainable energy development strategy.

IEEJ : July 2011

Renaissance Hydropower Project• 5250 MW• 15177 GWh/year• 66 billion m3 of water storage
capacity
31

IEEJ : July 2011

Thank you
Contact : report@tky.ieej.or.jp