CAPE TOWN, South Africa, November 19 /PRNewswire/ --

Rising demand for power in Ethiopia has led to substantial and lucrative investment opportunities for both international and local power companies. Ethiopian energy policy, which includes the Rural Electrification and Universal Electricity Access Programme, has resulted in sizeable investment from the government and the donor community.

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Over $780 million has been invested in the upgrading, maintenance and expansion of existing equipment as well as on new installations. Such efforts are set to improve the capacity and efficiency of the power sector in meeting current and future demand.

The Ethiopian electricity industry has embarked on a growth trajectory, notes Frost Sullivan (http://www.power.frost.com) Industry Analyst Moses Duma. Power sector reforms have attracted significant investments from the World Bank, the European Investment Bank, the African Development Bank and the government of Ethiopia.

While the Ethiopian industry has been opened up to private participation, private companies are obligated to sell electricity to the state utility through power purchase agreements. Meanwhile, the utility is boosting its generation capacity through the construction of several hydro power plants.

Lack of adequate financial resources is hampering the growth of the Ethiopian electricity industry. The dearth of finances hinders the maintenance and servicing of archaic equipment currently in use. This lack of funds is a serious concern in a capital-intensive industry and threatens to stymie future expansion plans.

With 98 percent of its generation capacity being in hydropower, Ethiopia may face challenging times during droughts, cautions Duma. The majority of power plants in Ethiopia depend on water from the Nile and its tributaries. Financial constraints may also affect the ability of the utility to source diesel for generators when water levels are low.

To meet this challenge, efforts should be undertaken to develop more thermal power plants in order to create a more balanced power generation mix.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the strategic analysis of the Ethiopian electricity industry, then send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Strategic Analysis of the Ethiopian Electricity Industry is part of the Energy Power Growth Partnership Services Programme, which also includes research in the following markets: Asian Power Plant Markets, Country Industry Forecast: The Indian Energy Industry, Country Industry Forecast: The German Energy Industry, SADC Transmission and Distribution Equipment Markets and Africa Steam and Gas Turbine Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership(TM) empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost Sullivan's Growth Partnership Services, visit http://www.frost.com.

Strategic Analysis of the Ethiopian Electricity Industry M261 Contact: Patrick Cairns Corporate Communications - Africa P: +27-18-468-2315 E: patrick.cairns@frost.com http://www.frost.com

Patrick Cairns, Corporate Communications - Africa, Frost Sullivan, +27-18-468-2315, patrick.cairns@frost.com; Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO