Africa-Press – Ethiopia. Addis Ababa January 3/2025 (POA)—Ethiopia is expanding its role as a regional energy powerhouse with electricity exports poised to significantly contribute to its economic growth and foster closer ties with neighboring nations.
Ethiopia, which is currently supplying power to Sudan, Kenya and Djibouti, is on the verge of commencing electricity export to Tanzania, a crucial step in its ambition to become a regional energy hub.
Ethiopian Electric Power CEO, Ashebir Balcha confirmed today that final grid testing for the Tanzania connection is underway.
Pointing out the growing regional demand for Ethiopia’s reliable and competitively priced electricity, he said formal requests from countries like South Sudan have also been received.
While currently exporting less than 10 percent of its generated power, Ethiopia is strategically expanding its generation capacity to meet both domestic needs and growing export demand.
According to Ashebir, the economic and diplomatic benefits of exports are substantial.
Export revenues directly contribute to subsidizing domestic electricity tariffs, providing significant relief to consumers and stimulating economic activity within Ethiopia, the CEO noted.
Furthermore, the exports generate valuable foreign currency, he elaborated. Beyond economic gains, power exports enhance Ethiopia’s regional influence, fostering stronger diplomatic ties and promoting cooperation among neighboring nations.
According to him, the government has also actively encouraged private investment in the power sector.
Private investors are already actively engaged in developing new power generation projects, complementing the government’s efforts to expand capacity and ensure a sustainable energy future.
Sources of the Ethiopian Electric Power reveal that the nation has generated 31.5 million USD from electricity exports in the first three months of the current Ethiopian fiscal year.
This revenue is expected to significantly increase as new export connections become operational and generation capacity continues to expand.
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