Ethiopia’s access to electricity program gets a US $200 mln boost from WB

Addis Ababa, May 31 (WIC) - The Board of Executive Directors of the World Bank approved a US$200 million credit from the International Development Association to the Government of Ethiopia (GoE) to increase rural coverage and to provide access to affordable, modern, cost-effective electricity services to its citizens.

Over the past 5 years, GoE has made some commendable strides in improving access to electricity. As a result, over 41% of rural towns and villages have been connected to the grid and an additional 2 million consumers have access to electricity.  However, per-capita consumption of electricity in Ethiopia remains relatively low at about 200 kWh per year.   

The Electricity Network Reinforcement and Expansion Project aims to support GoEs’ efforts of reinforcing the country’s electricity network by upgrading and extending the grid in order to improve the overall service delivery of the Ethiopian electricity network. In addition, the project will help to increase access by intensifying connections to existing households and villages in the areas already connected by the grid while at the same time, enhancing connectivity in new areas.   

According to the World Bank , the project will also help to develop markets for renewable energy and energy efficient products such as, stand-alone solar home systems, solar lanterns, improved cook-stoves, biogas, compact fluorescent lamps, etc.   

“The project will provide desperately needed power to not only those who are already connected to the grid, it will also provide modern energy services for poor households in the proximity to the  grid who cannot afford a grid connection. This means that for the first time, children in those areas will be able to do their homework and read at homes lit by light bulbs” said, Guang Z. Chen Country Director for Ethiopia.   

The project will provide a comprehensive technical assistance and capacity building for Ethiopian Electric and Power Corporation (EEPCO), the Development Bank of Ethiopia (DBE) as well as the Ministry of Water and Energy (MoWE).  EEPCO will reinforce its transmission and distribution network infrastructure and DBE will widen its market presence extending access to finance to private sector enterprises and micro finance institutions while MoWE will assist with off-grid market development activities.   

“The private sector in Ethiopia will get financial support through this project to import, supply and distribute renewable energy and energy efficient products in rural Ethiopia.  This project will help create a demand driven vibrant market and shall promote solar home systems, solar lanterns, biogas plants, etc. in addition to conventional grid network development  The project targets to benefit about 385,000 Ethiopians.” said Raihan Elahi, Task team leader for the project. (Financial Channel)