IDS Policy Briefing 187

Renewable Energy Procurement by Private Suppliers in Ethiopia

Published on 28 February 2022

Auction-based renewable electricity procurement has the potential to attract private investment and lower prices, but its design and implementation can be challenging.

Since 2018, Ethiopia has organised auctions to procure new capacity from independent power producers (IPPs). Based on an in-depth study of the political economy, this policy briefing explores factors impeding the design and implementation of IPPs’ projects, including the shortage of foreign currency and convertibility of the Ethiopian birr to repatriate profits. It proposes measures to overcome these obstacles and mitigate risks, to put Ethiopia on course to achieve universal access to electricity by 2030.

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Cite this publication

Ayele, S. and Shen, W. (2022) 'Renewable Energy Procurement by Private Suppliers in Ethiopia', IDS Policy Briefing 187, Brighton: Institute of Development Studies, DOI: 10.19088/IDS.2022.008


Seife Ayele

Research Fellow

Wei Shen

Research Fellow

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published by
Institute of Development Studies


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