Regulatory review of the electricity market in Ethiopia: towards crowding-in private sector investment

Abstract

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. 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. Such measures are expected to sustainably attract private sector investment for sector development, supplementing scarce public sector resources. This is particularly crucial in a post-COVID environment where public resources are even more constrained due to priorities in public health and social protection, as well as public spending on economic recovery and revival