The Ethiopian-German Energy Cooperation

Project description

Title: The Ethiopian-German Energy Cooperation
Commissioned by: German Federal Ministry for Economic Affairs and Climate Action (BMWK)
Country: Ethiopia
Lead executing agency: Ethiopian Ministry of Water and Energy (MoWE)
Overall term: 2020 to 2022

 From left to right:  -	Abera Endeshaw, Chief of Staff for the Ethiopian Ministry of Water and Energy (MoWE) -	Florian Fritsche, GIZ Advisor -	Ambassador Mulu Solomon -	Minister for Water and Energy Dr Habtamu Itefa Photo: Thomas Trutschel/photothek.de

Context

Despite its strong economic growth, Ethiopia is suffering from a continuing shortage of foreign currency, which impedes international trade and investment.

Ethiopia is in a particularly advantageous geographical position when it comes to harnessing water, sun, wind and geothermal energy. Hydropower resources  currently account for over 90 per cent of Ethiopian electricity generation and will enable integration of fluctuating solar and wind power into the East African Power Pool.

Key challenges are access to modern energy services and the reliable and efficient supply of energy to the economy – especially to the industrial parks established to attract foreign investments. Decentralised and well-coordinated power generation is a crucial part of this.

Objective

Experiences of the German energy transition contribute to sustainably transforming Ethiopia's energy system towards a comprehensive use of renewable energies and energy efficiency.

Approach

The Ethiopian-German Energy Cooperation supports Ethiopia in the energy transition.

The project pilots the digitalisation of hydropower plants with the state-owned power generation company Ethiopian Electric Power. Besides supply of essential spare parts, it sets up digital maintenance systems to enable long-term, cost-effective use.

An innovation competition supports start-ups in the field of decentralised energy solutions and strengthens the country’s entrepreneurial landscape. In order to ready the country for future markets and promote a dynamic industry, the project raises awareness about energy efficiency, electric mobility and sustainable buildings.

As the market for sustainable energy is still very small, the demand stimulation is a first crucial step. Model sites (“Energy Transition Seeds”) and targeted communication are designed to entice public and private actors to invest.

The project also supports the Ethiopian Ministry of Water and Energy (MoWE) and other authorities on strategic issues, including Ethiopia’s positioning in the hydrogen economy, and the global dialogue on the energy transition.

Last update: June 2022