USD200m for Ethiopian power
GOVERNMENTBy BiztechAfrica - May 30, 2012, 3:38 p.m.
The Board of Executive Directors of the World Bank has approved a USD200 million credit from the International Development Association (IDA) to the Government of Ethiopia to increase rural coverage and to provide access to modern, cost-effective electricity services to its citizens.
The World Bank said Ethiopia had made some commendable strides in improving access to electricity in the past five years. As a result, over 41% of rural towns and villages have been connected to the grid and an additional 2 million consumers have access to electricity.
However, per-capita consumption of electricity in Ethiopia remains relatively low at about 200 kWh per year.
The Electricity Network Reinforcement and Expansion Project (ENREP) aims to support the government’s efforts to reinforce the country’s electricity network by upgrading and extending the grid in order to improve the overall service delivery of the Ethiopian electricity network.
In addition, the project will help to increase access by intensifying connections to existing households and villages in the areas already connected by the grid while at the same time, enhancing connectivity in new areas.
The project will also help to develop markets for renewable energy and energy efficient products such as, stand-alone solar home systems, solar lanterns, improved cook-stoves, biogas and compact fluorescent lamps.
“The private sector in Ethiopia will get financial support through this project to import, supply and distribute renewable energy and energy efficient products in rural Ethiopia. This project will help create a demand driven vibrant market and shall promote solar home systems, solar lanterns, biogas plants, etc. in addition to conventional grid network development The project targets to benefit about 385,000 Ethiopians.” said Raihan Elahi, Task team leader for the project.
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