20101102
Addis Fortune

Hydropower projects like the Tekeze Dam are expected to go a long way in providing in the country's energy needs.

One of the criticisms that have been levied against the Growth and Transformation Plan (GTP) which the government announced around three months ago was its projection regarding the energy sector.

The current energy generating capacity of the country stands at 1,996MW which is much higher than it was 20 years ago, 340MW. The plan called for a fourfold increase in the country's generating capacity by constructing hydropower, wind, and geothermal projects to enable the country to reach its highest capacity ever, between 8,000MW and 10,000MW, in five years' time. Many have criticised this saying that it is impossible.

The ambition of the plan was not lost on Miheret Debebe, chief executive officer (CEO) of the Ethiopian Electric Power Corporation (EEPCo), when he gave a press conference on Friday, October 23, 2010.

"It is better to plan big," he said. "If you cannot achieve it all, at least you will achieve a great deal."

By the end of 2015, the EEPCo plans to have finished eight hydropower projects which will bring its total generating capacity to 5,022MW once they all become operational. The projects are Fan, Gibe III, Genale III, Helele Werabesa, Chemoga Yeda, Gibe IV, Genale VI, and Geba I and II and their capacities are 100MW, 1,870MW, 258MW, 422MW, 278MW, 1,472MW, 256MW, and 366MW, respectively.

"Almost all of the financing for these projects has been secured," Mekuria Lemma, chief officer of Corporate Planning at EEPCo, told Fortune.

There are also seven wind projects of which construction is expected to be finalised by the end of 2013 with a total capacity of 764MW including Ashegoda, Adama, Messobo, Ayisha, Debre Birhan, Assela, and Adama.

Apart from being a good alternative source of power, an advantage of wind power is that the construction period is very short, according to Mekuria. The country is believed to have more than 10,000MW capacities in wind power.

There is also a geothermal project, Aluto Langano, of which the pre-feasibility study has been finalised. The project, with a capacity of 75MW, is estimated to be finalised by the end of 2015 and is to be financed by the World Bank (WB) and the government of Japan. The feasibility study of geothermal projects costs more than the construction, which is why they are financed by foreign sources, Mekuria said.

However, the current problem is not power shortages but bringing the power to households, according to officials at the EEPCo and reiterated by Prime Minister Meles Zenawi during his address to Parliament on Tuesday, October 19, 2010.

The corporation plans to construct 6,000km of transmission lines in the coming years to alleviate this problem. The construction of 2,000km has already been started. The EEPCo is trying to secure funds for the construction of the other 4,000km, the feasibility study of which has been finalised, and finish it by the end of 2015, according to Mekuria. An additional 126,000km of distribution lines are also to be constructed over the next five years.

"After analysing the quarterly demand side growth for power consumption this fiscal year, we have proven the accuracy of our presumption in determining the five-year strategic energy supply plan," Miheret said.

With this much expansion planned to be carried out in the next five years, the EEPCo is to sign a contractual agreement with the Ethiopian Metal Engineering Corporation (EMEC), a local company, for the maintenance of its transformers and diesel generators as well as the manufacture of electro and hydro mechanical equipment in a month. This is following the signing of a memorandum of understanding (MoU) between the two around three months ago.

The corporation expects to save millions of dollars by substituting the importation of transformers and electro and hydro mechanical materials as well as its efficiency. Although the EEPCo currently has 5,000 transformers that require maintenance, its workshop only maintains around 30 to 40 transformers a month.

The EMEC is expected to maintain a minimum of around 2,000 of the ones which are idle at the moment and to finalise the maintenance of the Dire Dawa, Awash, and Kaliti diesel generators by the end of May 2011, Mekuria told Fortune. The diesel generators will help provide alternative energy during peak energy consumption hours once they start operation.

"We have already given the EMEC the design and specifications for the 13 transmission lines that are to be manufactured in a year's time," he told Fortune. "This will save us not only the material but also the knowledge that we imported."

Another problem that is plaguing the corporation is the distribution challenge. Although all the dams are full or near full, the EEPCo has been unable to get the power to its customers.

An energy shortage is occurring due to a coincidence factor, the overload that results from people using electricity between 8:00am and 12:00pm and again between 6:00pm and 10:00pm, according to Miheret. The energy consumption outside of these times is one third of that during peak hours.

This was the main reason for the EEPCo calling the press conference on Friday. Ironically, the power went out a couple of times during Miheret's speech about load management problems.

"Looking at condominiums as an example would sufficiently illustrate the problem," Miheret said. "If all the around 150,000 condominiums were to use their stoves (each 3.5KW) at the same time, it would consume all the energy generated by Tana Beles Hydropower Plant (460MW)."

This should show the need for load management clearly, according to Miheret. The EEPCo does not want to use peak hour tariffs that are higher than off-peak hour tariffs to bring about a fair distribution of power.

"What we have in mind is to engage the public to cooperate and shift its consumption hours which will greatly alleviate the load concentration," Miheret said.

Although there could be a difference in the quality of the service, currently, the price of one kilowatt is 0.3 cents (in dollar) which is much less than in Europe where it costs, without tax, 0.50 cents (in dollar).

Although not on the table now, increments of the tariff are going to be addressed sometime in the future, according to Miheret. Yet, awareness of the public, who will get a chance to debate about it before it is approved, is vital as such steps would also bring quality service.

The public private partnership in the field is the way of the future, he stressed.

However, peak hour load is not the only reason for power disruption at the moment, Miheret admitted. Almost 20pc of the 138 substations that are located at the gates of many cities in the country are working beyond their capacity, especially in highly populated areas which necessitates their redistribution.

The other problem that has created a lot of dissatisfaction among consumers is the introduction of new technological changes like the laying of cables in hundreds of meters in areas commonly known as old towns including Kassanchis, Piassa, Arat Kilo, and Bole. Such works have also played their role in disrupting power transmission.

"About one month ago, we shifted our working hours to between 1:00am and 6:00am and Sunday mornings," he said.

Ethiopian Electric Power Corporation Five-year Plan

Addis Fortune

Hydropower projects like the Tekeze Dam are expected to go a long way in providing in the country’s energy needs.

"The problem of Gibe II is also in the final stages as more than 90pc of the rehabilitation work is being finalised," Miheret said. "The problem occurred at the ninth kilometre and we have reached the 12th kilometre of the 26km long tunnel. So we are only doing quality control or inspection on the remaining parts of the tunnel."

Miheret was shy to divulge the exact date when it will be finalised.

The other reasons for the disruption in connectivity include traffic accidents, the construction of new buildings, the movement of trees caused by wind pressure, the human side management, and the corporation's inefficiency in managing and inspecting.

With big plans and big problems, the fate of the EEPCo's accountability has not been determined. It is yet to become clear whether it will fall under the auspices of the Ministry of Water and Energy (MoWE) or be directly accountable to the Prime Minister's Office.