Ethiopian Electric Power (EEP) announced an investment of $500 million to build new power stations and update the existing stations with the help of the World Bank. In this announcement, EEP mentioned that they will open 14 new power stations and lines and renovate the existing power stations.
There is no doubt about the importance of these projects and Ethiopian Electric Power CEO, Ashebir Balcha, mentioned that they have a plan to complete all these projects within 3 years.
We all know that Ethiopia has some infrastructure and access to electricity challenges in the country. Ashebir Balcha mentioned that we will enhance the current efficiency and address the current challenges as well.
Ethiopian Electric Power should pay attention to upgrading the infrastructure because by doing this they may reduce the power outages caused by the maintenance issue rather than supply limitation.
CEO of EEP mentioned that the plants have a life of 50 to 100 years but there is a need to replace some equipment regularly. Can Ethiopia do this for the long term as the economy is not performing well? Ethiopia is also working on renewable energy sources with the Koisha solar power project which is 65% completed.
Moreover, renovation of the Tekezie power plant is also ongoing and EEP is reinvesting the revenue that they are getting as a result of exporting the electricity to other countries.
It will be interesting to see how effectively Ethiopian Electric Power works on these projects and under what strategies and criteria EEP allocates the amount of $500 million to all projects.
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