Energy developers will be able to commence operations within three to five years after being licensed, according to the newly amended proclamation. This is contrary to the existing one where all energy developers were required to become functional within 12 months.
The proclamation is amended in a bid to alter burdensome provisions and encourage investors in the energy sector. It is an action taken to achieve the government's plan of adding 12GW of renewable energy to the grid by 2020.
The parliament, in its eighth regular meeting held last Tuesday, tabled the four-year-old energy proclamation.
Geothermal and hydropower project developers must become operational within five years, whereas investors engaged in wind, solar, biomass, coal and natural gas energy must start generating power within three years of getting the licence, according to the amended proclamation.
The Ethiopian Energy Authority has also drafted a regulation for its implementation.