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The African Development Bank (AfDB) will channel USD 22.6 million to improve renewable energy programs in low income countries (SREP) including two in Ethiopia.
After successfully achieving an investment plan endorsement from the SREP’s sub-committee at their meeting held on 8 March 2012 in Nairobi, Kenya, Ethiopia is set to begin preparing renewable energy projects.
Approved in principle, Ethiopia’s investment plan calls for AfDB technical support and guidance to prepare and implement its Assela wind farm project and Phase II of the Aluto Langano geothermal project.
Project preparation grants were approved for both projects (USD 1.7 and .9 million respectively). Ethiopia will seek full endorsement of its investment plan by early May 2012. The two new renewable energy projects are expected to be implemented in the five year plan of the Ethiopian Electric Power Corporation (EEPCo). Most of EEPCo’s electric power projects are renewable energies, while the hydro electric power project is the most daunting and lucrative task to be undertaken by the corporation.
Currently the country’s total electric production does not exceed 2,100MW. At the end of their five year plan (2015) the corporation plans to generate up to 10,000MW electric power from hydro, wind and geothermal projects. Different studies indicated that the country can produce 60,000MW electric power from different renewable sources and hydro electric power production, which has a capacity to produce 45,000MW.
The SREP sub-committee meeting was preceded by the annual SREP pilot countries meeting from March 5-7 2012 in Nairobi where Ethiopia, Kenya, Liberia, Mali, and Tanzania joined counterparts from around the world to share experiences and gain insight on implementing the SREP to advance national renewable energy development goals.
SREP is a program of the Climate Investment Funds (CIF) of which the African Development Bank (AfDB) is an implementing agency.
The Aluto Langano geothermal energy project is expected to have the capacity to generate 70 MW and Assela Wind Power Project is expected to produce 100MW. Assela wind farm is one of the six wind power projects that will be constructed in the GTP.