Phoenix develops a financial model for Ethiopian Electric Power in Ethiopia

With over 100 million inhabitants and rapid economic growth, Ethiopia is committed to modernizing the energy sector. The generation segment was thus liberalized in 2017, allowing independent power producers (IPPs) to build and operate power plants to supply the national grid. A dedicated IPP unit has been created within Ethiopian Electric Power (EEP), a national public operator, to examine these projects.

Expertise France, in charge of a technical assistance to support economic reforms in the country funded by the Agence Française de Développement (AFD), received a specific request from EEP to have a financial model as a tool for analyzing solar and wind power production projects.

Expertise France commissioned Phœnix Consulting International to design this model. Developed for the Metehara solar power plant (100 MW), it will have to be replicable to other project producing energy from renewable sources. Phœnix is also responsible for capacity building of EEP’s IPP unit and training its agents so that they can use this model but also develop others to evaluate future projects.