The Ministry of Water and Energy in Ethiopia is taking steps to facilitate private investment in renewable energy generation and distribution. To achieve this, the Ministry collaborated with the International Solar Alliance and organized a consultation in Addis Ababa this week. The primary objective of the event was to promote the widespread adoption of solar energy throughout the country and mobilize resources for the development of a comprehensive legal framework.
Currently, electricity supply and distribution in Ethiopia are under the government’s monopoly. However, State Minister of Water and Energy, Sultan Weli, acknowledged that this centralized approach has impeded progress in the sector. To address this challenge and encourage private sector participation, the government is working on a comprehensive legal framework that will include policies, decrees, and guidelines.
Despite the abundance of solar resources in Ethiopia, only a small fraction of its potential, approximately 400 megawatts, has been harnessed. The State Minister attributed this underutilization to the absence of a legal framework that allows private developers to invest in solar energy projects. Without such a framework, private investors face challenges in receiving payment for the sale of solar energy.
The International Solar Alliance expressed their commitment to supporting the expansion of solar energy development in member countries. The alliance will provide technical and financial assistance, actively engage in supporting projects, and focus on attracting large-scale private investment in the sector. Furthermore, the alliance plans to showcase these projects in various locations to demonstrate the potential of solar energy.
By developing a legal framework that facilitates private investment, Ethiopia aims to unlock the untapped potential of its solar resources and accelerate the adoption of renewable energy. This initiative aligns with the country’s commitment to sustainable development and paves the way for a more diversified and efficient energy sector.
