Ethiopian Renewable Energy Sector Development program Presentation for 37th Geothermal Resource Council Annual Meeting. Las Vegas, Nevada, September, 2013   Gosaye Mengistie Abayneh Director Energy studies and Development, MOWE, Addis Ababa Ethiopia

Short Biography Educational Background: MSC Energy Economics, University of Dundee, Scotland UK, 1995 Employment Record 2001 - 2005 Department Head, Energy Expansion and Development at the Ministry of Infrastructure 2005 - 2009 Department Head, Energy Expansion and Development at the Ministry of Mines and Energy. 2010 - until now, Director, Energy Studies and Development, Ministry of Water and Energy. The Management Board Member, Ethiopian Electric Power Corporation since 2005.

Some Factsheet Area: 1.14 million km² Population: 83 million Rural/Urban: GDP per capita: Inflation: GDP per sector: Installed Capacity: Energy Mix: Consumption Per capita : 1.14 million km² 83 million 83.5% / 16.5% USD 400m 2.8% Agriculture - 41% Industries - 13% Services - 46% 2.178MW Hydro - 93.1% Ohter RE - 6.9% <100 kWh

Macro situation and Vision The Ethiopian economy, non- oil-driven economy, has grown more than 11% for the last 8 consecutive years. The economy is expected to double with an expected yearly economic growth of a minimum 11 percent until 2015. Our Growth and Transformation Plan envisions a major leap in terms of not only economic structure and income levels but also the level of social indicators.

Macro Situation and Vision The Climate-Resilient Green Economy Strategy issued by the Government of Ethiopia in 2011, aiming to protect the country from the adverse effects of climate change and to build a green economy. Ethiopia will achieve zero net carbon emission by 2025. To reach a lower middle income country status before the middle of the next decade.

Energy Sector status and Strategy Electricity demand growth rate well above 32% per annum. About 88% of the population depend on biomass Energy. Universal electricity coverage 53% Our strategy to generate all of our electricity from renewable energy resources. The country deeply engaged in constructing hydroelectric dams, which will serve as the backbone of our power system, supplementing them with wind, geothermal, biomass and waste-to-energy power plants, to create a better energy mix for the country.

Power Demand Forecast Target and Moderate forecast According to the Target scenario electricity demand will be expected to grow by 32% until 2020. September 18

Energy Development Potential and Status Resource Unit Exploitable Reserve Exploited Amount Percent Hydropower MW 45,000 ~2100 <3% Solar/day kWh/m2 4 – 6 <1% Wind: Power Speed GW m/s 1,035 7 171MW <1%  Geothermal 7,000 7.3 MW Natural gas Billion m3 113 - 0% Oil Shale Million tons 253 Petroleum Under exploration

Twelve different basins for power development

East African Countries Geothermal Resources Djibouti Eritrea Ethiopia* Kenya* (largest producer) Malawi Tanzania Uganda Zambia * Rwanda Burundi DRCongo Comoros Islands *Plant installed

Exploration began in 1969 (UNDP & EG) 16 Geothermal Prospect areas were identified for Electricity generation in the whole ERV (covers 13% of the country) The resource is also for direct uses (agriculture, agro-industry etc)

CORBETTI About 250 Km S of AA Detailed Geoscientific including 8 TG wells Max. Temp = 300 ºC . Survey has indicated potential 1000MW CTG-1 CTG-2 CTG-3 CTG-4 CTG-8 CTG-5 CTG-7 C Geological Map of Corbetti Geothermal Prospect Area.

Corbetti Geothermal Field Since the first half of 2011, Reykjavik Geothermal (RG) has been working on developing the resource. The Head of Terms for Power Purchase Agreement is now at final stage to sign. The generating capacity of the Corbetti resource is estimated to be at least 1,000 MWe. At the initial stage 300 MWe will be developed up to 2018. This first privately financed power project will undoubtedly will open the door for others to come. Up to 2030 it is planned to add at least 2,000 MW from all geothermal resources.

One of the major challenges in our energy sector development program is financing. Financing the projected electric power generation scale up has to far proven to be very challenging in realizing our ambitious plan. Electricity sector alone will need more than 2 billion USD/year.

currently the private sector participation is very crucial in our power sector development program specially to develop our geothermal energy.

Generation Projects coming into the system for the past year Internationally awarded HPP arch dam 2010 300 MW Tekeze HPP

Gilgel Gibe II Hydro Electric 420 MW HPP 26 KM Tunnel

6,000 MW Grand Ethiopian Renaissance Dam Project under construction (The nation’s project)

6,000 MW GERD PROJECT (35% completed)

GIBE III Dam (1870 Mw Generating capacity) 81% completed

Distribution of Average Wind Speed, m/s (Height: 50m, 1980~2009) 1,035 GW potential for exploitation

Phase I (120 MW) Operational Alstom wind turbines

ADAMA WIND FARM 51 MW (each 1.5 MW generating unit)

Regional interconnection (power and petroleum) Ethiopia- Djibouti 230 KV interconnector operational since 2011. Replaced 80% of the fuel based electricity consumption with AfDB Finance. Ethiopia –Sudan 230 KV transmission line completed. Has operational at the end of 2012. WB finance the Ethiopian Side . Border towns in Kenya Moyale interconnected. Ethiopia –Kenya 500 KV HV/DC transmission interconnector construction started this year. Ethiopia-Southern Sudan signed an agreement. Ready to interconnect with other neighboring countries.

Regional iNterconnection ….contd address both local and regional market through sense of Urgency and leap frog approach

Regional interconection..contd

We welcome you to invest to Ethiopia the Capital city of Africa

I Thank you