Private sector discusses energy policy


The Ethiopian Climate Innovation Center held a round table session with the public and private sector to discuss the opportunities and risks of private investment in Micro-Hydro Power (MHP) development.
A research paper on the topic presented by Dr. Paulos Chanie says the private sector has not gotten involved in micro-hydro energy development for transmission and distribution of power to non-electrified areas in the country or selling it to the national grid as much as it could.
According to the research paper, for the private sector to get involved it needs finance, technical knowledge and more attractive policy.
Several questions were raised during the discussion such as what kind of policy changes would be needed and how small and medium enterprises (SMEs) can obtain financing for micro-hydro projects.
According to Paulos Chanie, so far there are no clear and focused institutional arrangements to facilitate and regulate the involvement of the private sector in the generation of power from MHP and the possibility for transmitting and distributing it either through a mini-grid or national one.
The research provided policy recommendations such as expediting the enactment of the feed-in tariff policy, which was drafted in2009 and still is under revision weaknesses, the need for highly centralized policy making the process easier. It also recommended getting stakeholders to participate and for tariffs and administrative procedures to be changed to favor smaller investors.
The Ethiopia Climate Innovation Center (ECIC) is an organization that supports Ethiopian small and medium enterprises (SMEs) that are trying to address climate change challenges. It aims to accelerate the development, deployment and transfer of climate technologies by providing SMEs a set of holistic country-driven support services, such as financing and capacity building.