Electric Utility Reports Tripled Revenue as GERD Energizes Grid

The Ethiopian Electric Power (EEP), the state-owned power generation company, has posted a record 75.4 billion Br in revenues for the 2024/25 fiscal year, nearly three times higher than the 27 billion Br recorded in the preceding year.

The surge was driven by a dramatic increase in electricity generation, led by the operationalisation of the Grand Ethiopian Renaissance Dam (GERD), and a strong uptick in regional power exports. Out of the total revenue, 74 billion Br came from electricity sales, while 1.4 billion Br was generated from associated services. Foreign exchange earnings climbed to an impressive 338.7 million dollars, marking a 142pc jump from last year. Kenya and Djibouti remained the primary export markets.

Domestically, the EEU data mining operations, and industrial clients accounted for 93pc of energy sales, displaying a continued dependence on large institutional clients during a modestly expanding consumer base.

Hydropower remained the dominant source of energy, supplying 97.3pc of the national grid, with wind energy providing the remaining 2.7pc. Total electricity generation reached 29,480gWh, exceeding the company’s target by 16pc and registering a 43pc year-on-year (YoY) increase. GERD alone accounted for 33.2pc of this output. Its 3,400Mw of generation capacit, now officially declared fully completed, will be formally inaugurated in late September. At full capacity (5,150MW), the dam is projected to generate 15,670gWh annually.

Other key contributors to the grid included Gilgel Gibe III, Tana Beles, Gilgel Gibe II, and Genale Dawa III.

Ashebir Balcha, the CEO of the company, heralded a “new era” for EEP, declaring at the Skylight Hotel today, “financial and technical capacity are no longer constraints.” His assertion signals a shift in the company’s strategy from struggling with legacy inefficiencies to scaling up regional integration and long-term sustainability. The operational shift is supported by visible progress in infrastructure development.

The Koysha hydropower project, slated to generate 1,800MW, is 71.47pc complete. The Asela and Ayisha Wind Projects, each contributing over 40MW already, have passed 85pc completion.

However, not all projects met expectations. Both wind farms fell short of annual construction targets, and expansion efforts were impacted by conflict in northern regions and widespread theft of infrastructure, where 43 separate incidents in the past year were reported.

Out of 20 planned transmission and distribution projects, only five were operationalised in towns including Koji, Debre Tabor, and Alamata. However, two additional projects surpassed the 75pc completion threshold. EEP’s efforts to expand grid infrastructure in southern Ethiopia and within the newly launched Gada Special Economic Zone also made notable strides, nearing 75pc progress.

Despite these developments, access issues in conflict-affected regions and logistical bottlenecks continue to impede the pace of national electrification. The fragility of infrastructure security and the gap between project targets and delivery timelines remain lingering issues.

For the new fiscal year, Ashebir has outlined even more ambitious goals, including generating 31,600 gWh in electricity, with projected revenues of 109.5 billion Br from sales and an additional 1.69 billion Br from services. EEP has set a 175.35 billion Br budget, with nearly 79pc will be self-financed, a notable shift from previous years’ reliance on external borrowing. The remaining financing will come from a blend of domestic loans, foreign aid, and three billion Br in direct government support.

Key deliverable targets for the year include the official launch of GERD, finalising Asela Wind Farm, accelerating Koysha to 76.77pc completion, raising Ayisha to over 90pc, and initiating Aluto Prime geothermal development to reach 16.4pc by year-end, company sources disclosed.

Put your comments here

Related Posts

Radar | Jun 22,2024

VAT Overhaul Targets Broader Revenue Base

Radar | Feb 16,2019

City Tax Revenue Rises 26pc in Year

Featured | Jul 13,2019

State Bank Gobbles UP Utility Payment Services

Fortune News | Nov 09,2019

Large Pharma Suppliers Forfeit Five Percent of 2018 Revenue

Radar | Jan 12,2019

Chinese Firm to Supply GERD Turbines

Viewpoints | Jun 27,2020

The Global Economic Order's Implication on the GERD Dispute

Radar | Aug 01,2020

Nile Insurance Buys 12m Br GERD Bond

Radar | Sep 17,2022

Electric Vehicles Catch Tax Break

Fortune News | Nov 05,2022

Ethio-Kenya Electric Highway Suffer Theft, Vandalism

Agenda | Aug 24,2019

Electric Billing Gets Worse Before it Gets Better

---