Finance Ministry Signals Energy Reforms

Feb 10 , 2024

Unmet energy demand prompted discussion on the necessary structural and regulatory reforms for improved access between the World Bank and representatives of the Ethiopian government last week. Minister of Finance Ahmed Shide emphasized the need to steer the country towards a greater reliance on sustainable energy sources during the meeting held at the Hilton Hotel on Menelik II Ave. He expressed gratitude to the World Bank for the long list of projects it currently finances and expressed his hopes for continued support as the country begins implementing the second Home-Grown Economic Reform. An initiative to expand electric access in the country, the Access to Distributed Electricity & Lighting in Ethiopia (ADELE), was financed by the World Bank, with 500 million dollars in 2021 in addition to the Ethiopian Electrification Projection (ELEAP) for 375 million dollars in 2018. Representatives from the Ministry of Water & Energy, Ethiopian Electric Power, Ethiopian Electric Utility and Ethiopian Investment Holdings acknowledged the need to utilize the country's natural resources for a greater energy supply. The EEU's performance report last year indicates that a mere 4.4 million households in the country had formal access to the electric grid, averaging a little over 200,000 new customers each year.