NDF - Financing for climate change and development projects

NCF: Demand Side Management for Climate Change Adaptation for the Ethiopian Power Sector [NDF C3 B5]

8.06.2012
To develop a comprehensive Demand Side Management (DSM) action plan for the Ethiopian power system, which will help reduce the power systems vulnerability to climate change and decrease GHG emissions.

Ethiopia
Demand Side Management for Climate Change Adaptation for the Ethiopian Power Sector
Ref: NDF C3 B5

Nordic Partner: HIFAB OY (Finland)
Local Partner: Ethiopian Energy Agency (EEA) and Ethiopian Society of Electrical Engineers (ESEE)
Total Project Cost: EUR 454,900
NCF Financing: EUR 407,300
Agreement Signed: 25 October 2010
Project Classification: Climate change adaptation and mitigation
Duration: 18 months (completed)

Project Objective

To develop a comprehensive Demand Side Management (DSM) action plan for the Ethiopian power system, which will help reduce the power systems vulnerability to climate change and decrease GHG emissions.

Description

The Ethiopia power system is almost exclusively based on hydropower, making the system vulnerable to climate change. Climate change events such as increasing temperatures, droughts and reduced rainfall can negatively affect the water availability and reduce and change the flows into the hydropower reservoirs. This can result in reduced power availability and substantial power shortages. Demand Side Management (DSM) is a mean to optimize the consumers’ use of the existing power system. However, due to lack of information it is currently impossible to define the most efficient measures to improve energy efficiency and apply DSM policy actions in Ethiopia. The project has systematically collected end use data from different types of customers in different geographical areas of Ethiopia, and used the database to indentify, evaluate and propose DSM measures for the power sector. The main project output has been a complete assessment of DSM actions and a recommendation of a program of activities for DSM in Ethiopia in the form of an action plan report “DSM potential and proposed actions in Ethiopia”. The recommended DSM actions could result in savings of even up to 1 TWh/a of electricity in ten years if succesfully implemented.  The project has significantly contributed to the capacity building of the project beneficiary, the Ethiopian Energy Authority (EEA), through a comprehensive and successful training program.

Relevance for Climate Change

Implementing DSM actions in the power sector will have both climate change mitigation and adaptation benefits. Efficient energy use is an important way to reduce emissions as the reduced consumption will alleviate the pressure on the hydropower system, thereby reducing the risk for power blackouts and the need for petroleum based power backup, thus reducing CO2 emissions. DSM is also an effective climate adaptation strategy for the power sector as it enables resources to be used more efficiently.

Innovation and Knowledge Transfer

The project’s innovativeness lies in the systematic data collection of end-use data as it for the first time creates an opportunity to analyse Ethiopia’s electricity use. The project aims to change different consumer groups’ electricity use behaviour and the DSM-process will increase the consumers’ awareness of their electricity consumption and means to control and reduce energy costs.

For more information

Hifab Oy
Ethiopian Energy Agency
Ethiopian Society of Electrical Engineers
Alternative DSM Actions and Recommendations