Local off-grid private energy company known by the name Ethio Resource Group (ERG) wrapping up licensing requirements with Ethiopian Energy Authority (EEA), to provide 9.5 kilowatt electric power.

EEA on it part published a notice on the Addis Zemen newspaper if there is any objection to the license request by Ethio Resource Group.

The energy company is said to have commissioned 6 wind turbines and micro-grid system farms at Menz Gera Midir Woreda, Amhara State. It has completed all process and it expects to get the required license in 2 months time.

The micro-grid farm is the first to be owned by a private investor in Ethiopia. In other cases, it is the state that owns the energy generators.

ERG, a grantee of the US African Development Foundation (USADF), fully commissioned its wind-powered mini-grid on March 31, 2017, and has been distributing power to the six villages under two Kebeles of the Wereda, for free.

Currently the cost of electric power generation is 0.09 USD per kilowatt-hour. However, it is being distributed for 0.06 USD per kilowatt-hour, the government covering the difference by subsidy.

Commenting on the issue Managing Director of ERG, Mesfin Shimeles, said, “We took a rise. Like any other infrastructure development, electric power development has risks as it requires a huge investment while its return is too low.”

EEA is said to have already set a tariff for the electric power. “The tariff was made considering our expenses,” said Mesfin, yet did not disclose the amount.

Source: Fortune