Thursday, August 25, 2011

Ethiopia prepares for private sector participation in power supply

(August 25, 2011, ifandp)--The Energy and Feed-in Tariff Proclamation, a draft bill that will allow the private sector to supply power to Ethiopia’s national grid system will be tabled to the Council of Ministers in October 2011.

The bill, prepared by the Ethiopian Electric Agency, sets the tariff rates for Independent Power Producers (IPP) who can generate electricity from different sources including, hydropower plants, biomass and wind power.

Out of the recommended tariff rates, the minimum tariff rate set for hydropower, stood at US$0.08 for generation of 100kW of electricity, while US$0.10 is the maximum tariff rate allotted for the generation of 500kW generated from biomass and wind power.

However, the tariff rate declines by US$0.05 as the amount of power generated increases for hydropower and biomass electricity generation, while the tariff for electricity generated from wind power plants has a one dollar difference.

The Ethiopian Electric Power Corp (EEPCo) will pay US$5.50 to a company that generates 25,000-40,000kW of electricity using hydroelectric sources, while paying US$0.80 for a producer which generates power within a range of 100-500kW.
Source: Industrial fuels and Power

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