Ethiopia Cashing in Millions From Power Export to Sudan, Djibouti

Photo: Pexels
(File photo).

State-owned electricity producer, Ethiopian Electric Power Corporation (EEPCo) has announced that it has earned $28.4 million from exporting of electricity to Sudan and Djibouti

The figures covering between June and October this year show that the country earned $10.9 million from Sudan and $17.5 million from Djibouti.

Ethiopia had earned $37 million in the first nine months of the last fiscal year, after exporting 190MW of power.

Formerly known as Ethiopian Electric Light and Power Authority, EEPCo the firm engages in the production, transmission, distribution, and sale of electrical energy. Its projects include hydro, transmission construction, wind, geothermal, IT projects, and waste to energy projects.

Analysts believe predict that Ethiopia's economy has the potential to produce 45,000 MW.

The country - seeking to become the continents manufacturing hub - has taken initiatives towards being a reliable energy exporter to its neighbouring countries which will increase Ethiopia's export earnings and boost economic growth.

The $4.1 billion Grand Ethiopian Renaissance Dam (GERD) to be completed in 2022 and the $1.8 billion Gilgel Gibe 3 will both boost generating capacity from 2,400 megawatts now to more than 10,000 megawatts upon completion.

Ethiopia has numerous rivers it can capitalise on to achieve this.

In line with this, Black Rhino, owned by funds of U.S. investment company Blackstone Group, expressed interest in investments in Ethiopia's power generation sector, which signed framework agreements to build a fuel pipeline between Djibouti and Ethiopia.

Early this year, the Ethiopian government signed a 25-year power purchase agreements with Reykjavik Geothermal Ltd., a developer-led by Michael Philipp, the former head of Europe, Middle East and Africa for Credit Suisse Group AG, as the government seeks to bring power to all households by 2025.

According to Azeb Asnake, CEO, EEPCo, Ethiopia's power producing potential is matching that of countries such as Congo, especially in hydropower.

The country looks to be a regional clean power exporter to meet regional energy demand.

See What Everyone is Watching

More From: The Exchange

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.