The Energy Sector Profile
Due to lack of modern forms of energy supplies and their relative high cost when compared with Ethiopia’s low average income per capita (97 USD), ninety percent of the country’s population uses biomass energy such as the burning of wood, crop waste, and animal dung. This high consumption of biomass energy has lead to the continuing destruction of forests, shortages of fuel-wood, and degradation of rural ecosystems.
In many areas of the country wood consumption levels have been exceeding annual forestry yields for decades. This, combined with an annual population growth rate of about 3%, which puts additional pressure on fuel-wood sources, major fuel deficits are likely to result.
Already, fuel deficiency has begun affecting some areas. In parts of the Tigray region, there is such a shortage of fuel-wood that households are forced to dig up roots to use as fuel. Also, more and more people are beginning to use agricultural residues such dung as fuel alternatives. This poses the concern that the use of these resources as fuel instead of fertilizer will lead to diminishing of soil fertility which will then result in lower agricultural productivity. (Information from the World Bank - 2002).
Electric Power Sector Profile and Policy
Ethiopia has one of the lowest levels of energy consumption per capita in the world, which is 28 kWh. Only about 14.41% of the population has access to electricity. Electric supply is under the Ethiopian Electric Power Corporation (EEPCo). The state owned company currently provides electricity to over 777,007 customers in approximately 632 towns and communities in Ethiopia which is only a small proportion of the country's over 70 million inhabitants. (Information from EEPCo website- Accessed March, 2006).
Ethiopia's Power Sector Development Program
Ethiopia has crafted a comprehensive energy policy prioritizing the expansion and the development and utilization of hydro power. These energy policy measures in the electric power sub-sector are to build national capacity in engineering, construction, operation, and maintenance and gradually enhance local manufacturing capability of electrical equipment and appliances.
In the electricity sub-sector the main issues to be tackled by the Ethiopian Government are:
the low rate of the population access to power supply.
inability to connect large new commercial and industrial customers due to overloaded distribution network.
high cost of future generation investments.
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