Regulatory review of the electricity market in Ethiopia: towards crowding-in private sector investment
Author(s)/Corporate Author (s)United Nations. Economic Commission for Africa;
United Nations. Economic Commission for Africa;
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This report provides an analysis of Ethiopia’s electricity sector policies, laws, and regulations in relation to crowding-in private sector participation in developing national electricity infrastructures. The report is part of the United Nations Economic Commission for Africa and RES4Africa Foundation joint program on Regulatory Review of the Electricity Sector in Africa: Towards Crowding-in Private Sector Investment. The electricity market of Ethiopia is undergoing changes. This is demonstrated by shifts in the organization and structure of the electricity market, major leaps in generation capacity expansion, network development, improvement in electricity access, and a degree of openness to the private sector. This report examines the regulation of the electricity market in-depth concerning the crowding-in of private sector investment in generation, networks, and off-grid assets. The goal is to encourage private sector participation in the market through addressing regulatory impediments towards the achievement of SDG7 goals. It further aims to support the development of a resilient, competitive, diverse, and vibrant energy sector in Ethiopia. It is expected that this report will contribute, through its rigorous regulatory analysis and recommendations, towards the ongoing reform process in the electricity market of Ethiopia, which is aiming to achieve the following goals: development of a sustainable electricity market; planning and promotion of efficient investments in generation and networks to meet security of supply and enable exports; deliver a reliable and quality electricity supply to support economic growth; and achieve financial sustainability in the electricity value chain through cost-reflective and affordable tariffs. The purpose of this regulatory review is to pinpoint the main strengths and gaps of the policy and regulatory framework currently in force related to private sector participation in the entire electricity market. It further aims to offer concrete recommendations for regulatory improvement and reform towards attaining a competitive, resilient, and sustainable electricity market.
Citation“United Nations. Economic Commission for Africa; United Nations. Economic Commission for Africa (2021). Regulatory review of the electricity market in Ethiopia: towards crowding-in private sector investment. Addis Ababa :. © UN. ECA,. https://hdl.handle.net/10855/46745”
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