Ethiopia Energy Situation

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1.1 Energy situation

Ethiopia is one of the least developed countries with a population of about 72 million, growing at a rate of 3% per annum. Biomass fuels constitute more than 90% of Ethiopia's final energy consumption (99% of households, 70% of industries and 94% of service enterprises use biomass as energy source). Households account for 88% of total energy consumption, industry 4%, transport 3% and services and others 5%. Petroleum covers 5% of total energy supply. The country is completely reliant on imports to meet its petroleum requirements. The installed electricity generating capacity in Ethiopia is about 2.100 MW (xx% hydro, x% diesel and x% thermal) and production covers only 1% of national energy demand. Only 11% of the population have access to electric power. The overloading of the network frequently disrupts the power supply of large commercial and industrial customers. There is a need for substantial investments in the power system. Ethiopia is well endowed with renewable energy resources (solar, wind, hydro and geothermal). To date, however, there is a complete lack of economic viability of renewable energy applications. The policy framework for household energy is set by the Ethiopian Energy Policy, the Environmental Policy of Ethiopia and the Conservation Strategy of Ethiopia, which address energy conservation and energy efficiency in order to reduce the consumption of fuelwood.