A grant close to US$1 million, earmarked for the development and implementation of renewable energy projects in Ethiopia, has been approved by the African Development Bank's (AFB) Sustainable Energy Fund for Africa (SEFA).
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Ethiopia's Independent Power Producers (IPPs) will increase participation across the country as a result of the grant, which is intended to roll out a sustainable procurement framework, according to an AFB statement. The grant is valued at US$995,000 and aims to promote private investment into hydropower projects operated by the country's Renewable Energy Program.
The allocated funds will facilitate the government's ability to project analyses for the project in various areas, including financing, technical and feasibility. The grant will also assist in conducting assessments of environmental and social impacts, resettlement procedures and document preparation.
According to the Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare, a "well-structured procurement framework is crucial in mobilizing investments necessary to achieve energy access in Africa."
Ethiopia has been making strides towards its goal to develop the country into a regional hub for renewable energy by 2030.
The SEFA program acts in conjunction with the AFB's Institutional IPP/PPP Support project and its Power Supply for Industrial Development and Access Scale-up Project.
All of the projects fall in line with Ethiopia's Growth and Transformation Plan (GTP II).