This is the first Energy Efficiency Strategy for Ethiopia. It is the first consolidated Governmental document geared towards the development and implementation of energy efficiency practices in the country. The Strategy takes its mandate from the Energy Proclamation 810/2013, and from the Energy Regulation 308/2014 – “Establishment of the EEA”. The proclamation gives EEA a range of core responsibilities especially on energy efficiency and conservation, including:

• Licensing EE&C auditing, consulting and contracting services;
• Setting standards and producing labeling programs for equipment and appliances;
• Creating awareness and disseminating information;
• EE&C programs in industry;
• EE&C programs in buildings; and
• Collection and administration of an EE&C Fund

This Strategy allows for the immediate implementation of low-cost and no-cost interventions, as well as those higher-cost measures with short payback periods. These will be followed by medium-term and longer-term investment opportunities in energy efficiency. The Strategy acknowledges that there exists significant potential for energy efficiency improvements especially on industrial sectors, buildings and use of appliances.

From the energy consumption analysis it is observed that the electricity consumption is the highest in industrial sector, followed by residential and commercial buildings. The fuel oil consumption is highest in the transport sector followed by industries sector. Any energy conservation activity should begin with industries. The methodology for energy reduction programs in commercial buildings is similar to industries. The energy conservation activity in the residential sector can be through promotion of energy efficient appliances.

Strategic Energy Efficiency Framework for Industries

The Strategic Energy Efficiency Framework for Industries consists of the following main elements:

• Implementation of a set of Energy Conservation Programs in industries
• Development of databases and promotional campaigns
• Establishment and Utilization of an Energy Conservation Fund
• Capacity building for development, implementation and evaluation of energy Conservation programs

EEA could design and conduct an industrial customer survey to obtain statistically reliable data on equipment, types of equipment and their capacities and efficiency ratings, utilization patterns, and customer decision-making regarding the equipment. Following this EEA could then engage competent and experienced energy auditors to undertake comparative studies in these industries to identify technical and nontechnical reasons for variations in performances and to retain feasible and generic solutions on the basis of cost-benefit analyses. EEA should derive the specific energy consumption of industries and bench mark them with other industries among the various sub sectors of the industries group. Using the data available from the industry EEA should categorize the industries as Designated Consumer. EEA can initially consider industries above 1000 MW as Designated Consumers for which Energy Auditing shall be made mandatory. Similarly the selection should also consider the consumption of fuel oil in industries.

To enable industries to make a judicious choice at the time of procurement, EEA shall obtain the data on energy efficient equipment like motors, transformers, boilers, pumps, fans, air compressors, air conditioning systems which are generally used in industries. EEA should also conduct regular training programs on industrial energy audit with the help of engineers who are trained in energy auditing. The other very important issue is the availability of energy audit instruments for auditors. As the instruments are very expensive EEA can think of innovative methods of making the instruments available for auditors to carryout energy audits. This will enable the consultants to do instrumented energy audit of industries.

Energy efficiency finance program.

There is a need for an Energy Efficiency Fund that will facilitate the development and growth of an energy efficiency infrastructure that includes energy service providers such as ESCOs to help energy consumers develop and implement cost-effective EE projects. The Energy Proclamation already has a provision for setting up an Energy Conservation Fund.

Financial barriers limit the implementation of energy efficiency activities. Many of these barriers can be addressed by the development of creative financial products such as a Partial Credit Guarantee (PCG). The International Finance Corporation and the Global Environment Facility (GEF) have successfully developed and applied the PCG approach to stimulate the markets for EE. All the possible financial mechanisms are discussed in EE fund guideline in detail.

Strategic Energy Efficiency Framework for Buildings

The buildings in Ethiopia can be categorized into Government or Public buildings and new upcoming large buildings which houses hotels, malls etc. the major energy consumption equipment in public buildings are office equipment, lighting and standalone room air-conditioners

The strategy for improving efficiency in Public buildings is to have demonstration projects by identifying select buildings and involving equipment supplier for retrofitting it with energy efficient equipment in the lighting and Air Conditioning systems. The funding shall be made available from the EC fund.

A database of Energy Performance Index (EPI) which is Annual energy consumption divided by square feet area need to be maintained. This will help in comparative analysis on the performance of energy consumption and will give a trend in how buildings are performing.

Strategic Energy Efficiency Framework for Appliances

There are Opportunities for improving energy efficiency of appliances. One of the very effective tool is implementing energy efficiency standard and labeling program. Standards and labels are meant to help the consumers to identify energy efficient equipment and enable Suppliers to deliver higher efficiency products to the market. Appliances can be identified and prioritized to implement EES&L program according some selection criteria. The following five items are the most important appliances and equipment in the context of efficiency improvement as they use significant amounts of energy.

• Injera mitad and cook stove
• Electric ovens and cooking plates
• Refrigerators
• Air conditioning machines
• Clothes washing machines

Implementing a Standards and Labeling Program.

The basic steps for implementing energy efficiency standard and labeling program are:

• Decide whether and how to implement energy efficiency standards and labels
• Develop testing capability
• Analyze and set standards
• Design and implement a labelling program
• Design and implement a communications campaign
• Ensure program integrity
• Evaluate program performance and refine

Before a labeling program can be designed, policy makers need to decide which products should be included in the program. As a general rule, energy labeling will work best for products

that are purchased by the consumer at a retail business (i.e., where the consumer inspects items prior to purchase), and • for which there is (or could easily be) significant variation in the energy efficiency of different units that use a significant amount of energy that are present in most households (or where rapid growth is predicted), for which energy-efficient technology exists that is not being used in most products on the market, for which the purchaser pays the energy bills,