The Ethiopian electricity Feed-in-Tariff Proclamation that was expected to be passed by the end of the year is to be revised according to sources.
The new proclamation is intended to encourage private investors to take an interest in the production of renewable energy.
The new Feed-in-Tariff Proclamation was to be passed into law during this year to facilitate large scale deployment of renewable energy investment by providing investment security and market stability for private investors investing in the sector.
The revision of the tariff proclamation is the responsibility of the Ethiopian Electric Agency which is the regulatory body in charge of the supervision, the generation, and the transmission as well as the distribution and sale of the electricity and other power related issues.The Ministry of Water and Energy has decided to revise the proclamation before final approval according to Wondimu Tekle Minister of State for Water and Energy. The law could possibly be tabled before parliament during the course of the fiscal year he added.
Private sector investment in the renewable power sector is essential and so the tariff will be amended as soon as possible said Wondimu.
It is said that that tariff currently set by the government is one of the reasons that prohibits private investors from investing in the renewable energy sector.
Source: Capital
