ADDIS ABABA — The Ethiopian government is aggressively promoting investments in renewable energy through significant fiscal and non-fiscal incentives as part of its strategic plan to transform the energy sector by 2030. Ethiopian Investment Commissioner Hanna Arayaselassie announced these initiatives during a half-day stakeholders meeting aimed at financing and accelerating the country’s energy transition.
According to Ethiopian News Agency, Ethiopia’s ambitious development plan in the energy sector includes the goal of expanding power generation capacity to approximately 20,000 megawatts by 2030. This target is set to not only achieve universal electrification within the country but also establish Ethiopia as a significant power export hub. The plan involves considerable private sector involvement alongside ongoing substantial public sector projects, such as the Grand Ethiopian Renaissance Dam (GERD).
The Investment Commissioner emphasized the crucial role of renewable energy development within Ethiopia’s economic strategy, highlighting the extensive incentives designed to attract private investment. “While our efforts have seen modest success so far, we are committed to making the energy sector a top priority for the upcoming fiscal year and beyond,” Hanna stated.
Diane Sayinzoga, Chief of the UNCTAD Regional Office for Africa, praised Ethiopia’s efforts in facilitating investment across various sectors, especially in renewable energy, noting the ongoing partnership with UNCTAD to boost investment and economic development.
Gosaye Mengiste, Senior Energy Advisor at the Ministry of Water and Energy, added that Ethiopia is already a leader in renewable energy, with nearly all its electricity generated from renewable sources. Despite these advances, about 46% of the population still lacks access to electricity. “Enhancing regulatory frameworks to attract private capital into low-carbon energy projects is essential,” Gosaye explained. He also mentioned that new renewable energy projects would increasingly rely on public-private partnerships to meet the ambitious targets.
The day’s discussions aimed to identify both opportunities and challenges within the renewable energy sector, setting the stage for Ethiopia to become a significant player in sustainable energy and economic development on the continent.