- East Africa
- Energy - Finance
Ethiopia reveals another ambitious five year power plan
Ethiopian Electric Power Corporation (EEPCo) has revealed its plan to produce 13472 MW of power at a cost of 58 billion birr in the next five years.
EEPCo Chief Executive Officer (CEO), Miheret Debebe, last Friday presented a report on the company’s last five year period power generating and distribution performance and also announced an an ambitious five year plan.
EEPCo’s five year plan, despite a disappointing 34 per cent power generating failure registered in the last five years due to financial shortfalls, seeks to generate 13472 MW of power. According to Meheret’s report, the five year plan will be split into four strategic plans.
For the first strategic plan, which is to be implemented in the first years, an expected 1994 MW power will be produced after the completion of several power generating plants, currently underway.
The second plan will see EEPCo utilizing a contractual agreement it signed with foreign companies for the construction of new hydro and wind power plants. This contractual agreement alone is to generate some 1418 MW power.
Projects currently under construction and the sum of projects in the first and second strategic plans should help raise power generation to 7003MW in the third phase of the strategic plan, Meheret told the parliament.
New power plants are to be realised in the fourth phase of the strategic plan, for an anticipated 3057 MW. According to Mr. Meheret Debebe, the corporation’s power production by the end the next five year period should total 13472 MW.
Notwithstanding a 34 per cent failure in its previous five year plan, attributed mainly to financial shortage, EEPCo will require 58 billion birr to realise its next five year plan.
The corporation’s plan to generate 3270 MW during its last five year period at a cost of 28 billion birr fell through after it only achieved 1994 MW at a cost of 21 billion birr.
The CEO’s report, however, failed to explain how EEPCo plans to rise up to the financial challenge.
Some of the major projects hit by the financial shortage include the Gilgel Gibe III and Fincha Ametineshe hydropower plants, as well as an ambitious Ashegoda wind project.
The EEPCo CEO also argued that the corporation’s overall performance was lowered due to geological and hydrological factors that hampered the Gilgel Gibe II and Tekeze dam projects.