Fortescue Metals Group Ltd, an Australian company, has shown its interest in investing in Ethiopia’s power sector.
Representatives of the company on Thursday, September 17, 2020, held discussion with Dr Seleshi Bekele, Ethiopia’s Minister of Water, Irrigation and Energy.
The company expressed its interest to generate a total of 25 gigawatts of power (15GW from hydropower and 10GW from geothermal) at a cost of $10 billion.
Speaking at the meeting, Dr Seleshi said “this is a big opportunity for Ethiopia.”
The government of Ethiopia has recently introduced a reform to improve electricity access in the country, which currently stands at 45%.
The nation has a plan to increases access by developing clean and renewable energy, financing the sector, involving the private sector and building strong institutions, he said.
He added the discussion and the initiative of the company in particular have a significant contribution for the success of Ethiopia’s plan to provide electricity to all its people by 2030.
During the meeting, the Minister briefed the representatives on Ethiopia’s favorable investment climate, particularly for investors who want to engage in the development of renewable energy.
He said the expansion of industries and increasing demand for energy, especially in urban areas, is a good opportunity for the private sector.
According to the Minister, Ethiopia has a plan to increase its electricity exports to neighbouring countries from 350 megawatts now to 700 megawatts in the next few years.