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SEFA approves grant for power production in Ethiopia

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SEFA, managed by the African Development Bank, approved close to 1 million dollars grant to support the roll out of a sustainable procurement framework for Independent Power Producers (IPPs) in Ethiopia.

According to an AfDB statement, the Sustainable Energy Fund for Africa (SEFA) has on Wednesday, 22 May 2019,

] approved 995  000 dollars grant that will encourage private investments into hydro power projects through Ethiopia’s Renewable Energy Programme.

The grant will strengthen the government’s capacity to undertake bankability and technical analysis, including feasibility assessments of projects in the hydro priority pipeline, it was indicated.

Moreover, it provided for environmental and social impact assessments, resettlement action plans, and preparation of bidding documents for hydro projects.

The Bank’s acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare said “well-structured procurement framework is crucial in mobilizing the investments necessary to achieve universal energy access in Africa.”

The SEFA program will boost private IPPs participation, and spur investments into the Ethiopian hydro power sector, he added.

He stated that the program complements the assistance provided by the Bank’s Institutional IPP/PPP Support Project, as well as the Bank-financed Mekele-Dallol and Semera-Afdera Power Supply for Industrial Development and Access Scale-up Project.

The Ethiopia Renewable Energy Program, supported by the SEFA grant, is in line with the country’s Growth and Transformation Plan (GTP II) 2015/16 – 2019/20 and with the NEP targets.

As Ethiopia has a vast but untapped renewable energy potential, the government has outlined a National Electrification Program (NEP), targeting universal access by 2025 through a 65 percent on-grid, and 35 percent off-grid combination.

The goal is to transform the country into a regional energy hub by 2030.



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