News: ADB’s Sustainable Energy Fund approves a $995,000 grant to spur renewable investments in Ethiopia

Source: http://addisstandard.com/news-adbs-sustainable-energy-fund-approves-a-995000-grant-to-spur-renewable-investments-in-ethiopia/

Caption: Ashegoda wind farm near Mekelle in the Tigray regional state. According to Prof. Kindeya, President of Mekelle University, “it has been months since the Ashegoda wind farm is not functioning.” Projects like this could benefit form SEFA grant.

Addis Abeba, May 21/2019 – The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank, has on 17 May 2019, approved a $995,000 grant to support the roll out of a sustainable procurement framework for Independent Power Producers (IPPs) in Ethiopia, according to a statement sent to Addis Standard from the Bank.  

The SEFA grant is intended to “encourage private investments into hydro-power projects through Ethiopia’s Renewable Energy Program.”

“It will strengthen
the government’s capacity to undertake bankability and technical analysis
including feasibility assessments of projects in the hydro priority pipeline.”

The grant also provides for environmental and social impact assessments, resettlement action plans, and preparation of bidding documents for hydro projects.

“A well-structured procurement framework is
crucial in mobilizing the investments necessary to achieve universal energy
access in Africa. The SEFA program will boost private IPPs participation, and
spur investments into the Ethiopian hydro power sector,” said Wale Shonibare, the Bank’s acting Vice President for
Power, Energy, Climate Change and Green Growth.

The program also complements the assistance provided by the Bank’s
Institutional IPP/PPP Support Project, as well as the Bank-financed Mekele-Dallol and Semera-Afdera Power Supply for Industrial
Development and Access Scale-up Project, Shonibare added.

Ethiopia
has a vast but untapped renewable energy potential. Under a long-term
development strategy, the government has outlined a National Electrification
Program (NEP), targeting universal access by 2025 through a 65% on-grid, and
35% off grid combination. “The goal is to transform the country into a regional
energy hub by 2030,” ADB said.

The
Ethiopia Renewable Energy Program,
supported by the SEFA grant, is in line with the country’s Growth and
Transformation Plan (GTP II) 2015/16 – 2019/20 and with the NEP targets. It
also aligns with the Bank’s Energy Sector Policy (2012), the New Deal on Energy for Africa, especially focusing on
“Renewable Energy” and “Early Stage Project Finance”.

Background

SEFA
is a multi-donor facility
established to unlock private sector investments
in small to medium-sized clean energy projects in Africa through the following three
components: grants to facilitate the preparation of renewable energy generation
and energy efficiency projects towards bankability; equity investments to
bridge the financing gap for renewable energy generation projects and; and
support to public sector in improving the enabling environment for private
investments in sustainable energy. SEFA is endowed with contributions from the
Governments of Denmark, United States and the United Kingdom, and is hosted and
managed by the Power, Energy, Climate and Green Growth Department of the
African Development Bank.

The post News: ADB’s Sustainable Energy Fund approves a $995,000 grant to spur renewable investments in Ethiopia appeared first on Addis Standard.

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