AfDB backed electrification project has enabled the emergence of some 150 companies and factories in Ethiopia

In the Ethiopian rural areas of Alem Ketema, Gendo, Akesta and Nekemte, economic activity is growing exponentially. Since the end of the Rural Electrification Project II (PER II) in 2016, a hundred small and medium-sized enterprises have been in full development, according to a report from the African Development Bank made public this Wednesday, October 7.

The project, funded to the tune of 117.6 million US dollars by the African Development Bank (about 86% of the total cost of the project), has enabled the emergence of some 150 companies: factories, ironwork workshops, carpentry and tailoring, hotels and related businesses. In the town of Ferta, around 70 private companies have been established. Many investors are now working in these cities that are newly connected to the electricity grid.

The priority objective of PER II was to improve access to electricity in rural areas of the country, while helping to achieve the government’s objective of eradicating poverty. It aimed to electrify 335 rural agglomerations, to raise the national electrification rate from 17% in 2006 to 20% in 2011 and 75% in 2016, thus promoting the socio-economic development of rural areas. This objective has almost been achieved, notes the Bank report.

Indeed, in its implementation, the project resulted in the construction of two new 132/33 kV substations, with a total capacity of 25 MVA (megavolt-ampere) at Alem Ketema and Gendo. It enabled the extension of the existing substations at Akesta and Nekemte. In addition, 4,200 kilometers of 33kV medium voltage (MT) lines, nearly 1,700 distribution transformers and around 1,500 kilometers of low voltage (LV) distribution lines have been installed to supply electricity to rural towns. Network connections were thus made, including the installation of energy meters for the consumers of Akesta, Alem Ketema, Nekemte and Gendo. In Alem Ketema and in the ten Kebeles (small administrative sub-division), located nearby, around twenty schools,

“ None of the regions currently connected to the grid were electrified before the implementation of the project. Only a few towns like Alem Ketema (Amhara region) and Gida Ayana (Oromia region) had a diesel generator. In most cases, these generators were of low capacity and produced electricity for about four hours a day. Other areas and neighboring households had no access to electricity and used kerosene for nighttime lighting , ”the report said.

Following the completion of the initial scope of the project, a large mount ($ 36.7 million) was saved from the total loan amount and used to expand universal access to electricity to other areas. non-electrified in order to maximize the benefits of the project.

These works have produced concrete results: the construction of new 132 kV single-circuit lines over 150 kilometers between Mendi and Gidami and 30 kilometers between Butajira and Buee; the construction of a new 132/33 kV substation, with a power of 2×25 MVA at Gidami and 25 MVA at Buee and Yabelo; increasing the power of the Wukro substation from 132/15 kV to 132 / 33kV with a 25 MVA transformer; extension of the Sekota substation from 66 / 15kV to 66/33 kV, with a 12MVA transformer.

“ The project has had a significant positive impact on the environment, due to the use of clean and relatively cheap renewable energy, rather than imported oil to power diesel generators. Household use of traditional firewood (biomass) has been reduced, ”the Bank report welcomes.

According to the document, socio-economic activities have developed in the project areas thus creating new opportunities for employment and growth and also contributing to increasing income and improving the quality of life of residents. beneficiaries.

Source: Energy mix report