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The country is looking to become a major regional energy hub Ethiopia is on the verge of exporting electricity to another neighbouring country, as it looks to position itself as a major regional energy hub. Ethiopian Electric Power (EEP) CEO, Ashebir Balcha confirmed on Friday that final grid testing for the Tanzania connection is underway. Speaking to the Ethiopian News Agency, Balcha said the country’s electricity exports is poised to significantly contribute to its economic growth and foster closer ties with neighbouring nations. Ethiopia currently supplies power to Sudan, Kenya and Djibouti and regards the looming electricity exports to Tanzania as a crucial step in its ambition to becoming a regional energy hub. Pointing out the growing regional demand for Ethiopia’s electricity, Balcha said formal requests from countries like South Sudan had also been received. The country currently exports less than 10% of its generated power. Balcha said Ethiopia is strategically expanding its generation capacity to meet domestic needs and growing export demand. Also, export revenues directly contribute to subsidising domestic electricity tariffs and generate valuable foreign currency, he added. The Ethiopian News Agency also reported that data from the EEP reveal that the nation has generated $31.5 million from electricity exports in the first three months of the current Ethiopian fiscal year. This revenue is expected to increase as new export connections become operational and generation capacity continues to expand. Ethiopia increasing generation output The International Trade Administration reported previously that Ethiopia’s current 5,200MW of installed generation capacity reaches less than 60% of the country’s population. In August last year, Ethiopia announced that it has expanded the output of its mega-dam by 800MW, bringing the total capacity to 1,550MW. This increase in generation capacity at the Grand Ethiopian Renaissance Dam (GERD) follows the activation of two additional turbines on 24 August. GERD is expected to bring further additional turbines online as water levels rise. “The concrete dam construction is now completed. The two turbines generating 400MW each have now started operations, adding to the already functional two turbines generating 375MW each, totalling an output of 1,550MW,” said GERD. East Africa to rollout regional electricity market this year In December, the 13 East Africa Power Pool (EAPP) countries, which includes Ethiopia and Tanzania, announced that they plan to launch a centralised Day Ahead Market (DAM) in 2025 – a regional energy trading initiative expected to benefit more than 620 million people. The announcement was made the EAPP Regional Trade Conference in Mombasa, Kenya. |
