‘Unlimited potential’ of renewable energy is driving new partnerships in Ethiopia

Tariq Al-Qany is the Chief Operating Officer for Ethiopia, Uganda and the Democratic Republic of the Congo at Dar Al-Handasah Shair and Partners.

Last week, he was in Addis Ababa to sign an agreement with executives of state-owned Ethiopian Electric Power (EEP) regarding the Assela wind farm project in the Arsi zone of the Oromia region. Al-Qany also won a contract for design work and supervision of the EEP headquarters complex, which will be built in the heart of the capital at Mexico Square. The tower will be powered by its own green energy sources and, upon completion, is expected to replace the headquarters of the Commercial Bank of Ethiopia as the tallest in the city. Dar has completed the conceptual design for the project, which is not the first in Ethiopia.

The Beirut, Lebanon-based company has previously completed a number of projects for Ethiopian Airlines, including the Skylight Hotel and several terminals, as well as the recently completed e-commerce center for the flag carrier.

Since its founding as a specialized engineering firm in Beirut in 1956, Dar has gained fame for a series of large-scale projects spanning dozens of countries in the Middle East and Africa. He is a founding member of Sidara Collaborative, a leading global consulting firm in design, engineering, planning, sustainability consulting, digital solutions and services, and project management for buildings, cities, transportation, civil infrastructure, water and the environment.

ReporterAshenafi Endale caught up with Al-Qany to hear his views on Ethiopia’s renewable energy sector, the aviation industry and his company’s consultancy business. FRAGMENTS:

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Reporter: You are starting a number of new projects with EEP. Discuss these and any other contracts your company may handle in Ethiopia.

Al-Qany: This project is our second project at EEP. It belongs to the energy sector, i.e. renewable energy. EEP strives to be the leading supplier of renewable energy in the region. Of course, success will depend primarily on the completion of GERD and other renewable energy initiatives undertaken by EEP.

This new project consists of wind farms. This is our first project in Ethiopia, but we appreciate this kind of project. Renewable energy, and especially wind energy, is part of our company culture. Dar is a consulting firm known for promoting sustainable development. The sustainability category includes renewable energy projects, whether photovoltaics (solar), wind farms, or hydropower projects. These projects are our favorites; we like them. They not only transform our customers, but also help us realize our vision of transforming the world to use renewable energy resources rather than fossil fuels in general.

Is the Assela wind farm project a new project or an existing one?

This is actually an existing project. It started some time ago but has not been finalized. We are coming to support EEP in the final stage of the wind project. We will work on the final stages and continuation of the project.

In what areas do you provide consulting services?

We provide project review services, contract administration, support services and delivery services. We essentially represent the employer, EEP, and oversee the successful delivery of the project in accordance with the contract and in line with EEP’s specifications and aspirations.

Ethiopia is a new entrant in the market, especially in the field of wind and photovoltaic (PV) energy sources. What gaps have you observed in this endeavor?

We wouldn’t call them gaps; this is part of the learning curve. I would not classify any of the current levels of knowledge potential as a gap. I would call them part of the learning process. It all starts with the first attempt. It then gradually develops to become an area of ​​specialization.

From the conversations we have had with EEP, it appears that they are able to handle these projects very well. I believe that they have the necessary technical knowledge that allows them to supervise these projects very effectively. This isn’t even a starter for EEP.

Not only for wind farms, but we have been in talks with EEP officials about geothermal energy projects. It turned out that they were capable and competent. They can also use water energy. EEP aims to become the main source of green energy in East Africa.

What is the current status of the project?

They’re halfway there. The wind project will be completed between 2025 and 2026, hopefully sooner.

Renewable energy sources such as wind and geothermal energy are more expensive compared to hydropower. Do you think it can become a major source of energy in developing countries like Ethiopia, where investment capital is not as easily available? Do you think this is affordable for Ethiopia?

Renewable energy challenges are not specific to Ethiopia or African countries. This is a global challenge. The same discussions can be found in Europe, North America and Australia. This discussion is happening everywhere.

How can we address these challenges and make renewable energy a viable replacement for fossil fuels? I would never have thought of completely replacing fossil fuels. This won’t happen and any rational person can see that.

However, the more we reduce the pressure on fossil energy consumption, the better the overall environmental impact will be. That’s why these projects are important.

Costs are just one challenge, but they are evolving very quickly. If you take the costs of solar projects from ten years ago and check them now, you will notice that production costs have dropped significantly. The same applies to performance, which evolves over time. Year after year, these improvements help us better exploit the energy market. If they don’t improve, they will go out of business. But what is happening does not mean extinction. What we are seeing today is the emergence of renewable energy in every country. The good thing is that all stakeholders are learning and working together to maximize the benefits of renewable energy.

If you were asked to advise the EEP or the Ministry of Water, Irrigation and Energy on prioritizing energy sources, which solution would you choose?

Well, that requires more detailed research. We all know that Ethiopia is the water body of Africa. So my advice would be hydropower. Secondly, I wouldn’t share this straight away, but there was a study done a few years ago on geothermal potential in Ethiopia. Their surveys and research identify locations. We also know that Ethiopia is located in the best place where the solar energy source is much high. Based on precise locations in the country, sources and investments can be ranked based on the energy demand pattern.

Sometimes you may find that the most effective method is to build a wind farm near a specific location to meet a specific demand. In some other places you may need solar farms. In some other areas, you could consider geothermal energy. It really depends on your needs, features, location and resources available in Ethiopia.

Ultimately, all of them would be connected to the grid and enable energy diversification. You cannot rely on one source. This is what EEP does. They are trying to diversify renewable energy sources. If something happens, God forbid, you have support from other sources.

Foreign energy investors typically avoid Ethiopia, complaining that the tariffs offered by the Ethiopian government are lower than in other markets. Do you think Ethiopia’s tariff rates discourage FDI?

I’m not an expert on tariffs. Energy tariffs that attract private investors are a hot debate taking place everywhere. I come from Jordan. In Jordan, I think we have spent over ten years, maybe more, debating the issue of energy tariffs.

These are long-term commitments for the government to make. The number of variables and unknowns associated with this long-term commitment is terrifying. A lot of responsibility rests on the shoulders of decision-makers. Therefore, this topic is controversial in every country. Of course, over time we create the knowledge and data we need to make better decisions.

This is a challenge. I don’t deny it. In every country trying to attract investors, energy tariffs are a problem. Energy is a long-term investment. It is difficult for investors to make an investment without thoroughly examining all the variables over a long period of time and conducting a thorough analysis. Governments are also doing the same to make a commitment.

However, I believe that Ethiopia is successful in attracting investors and interested parties. We are one of them. If the government pushed away international organizations, we wouldn’t be here.

What prospects do you see for Ethiopia in expanding its energy market to the Horn of Africa and beyond?

The potential is limitless. EEP has already started exporting energy to many countries. Kenya, Sudan, Tanzania, South Sudan and others. It became a source of income. So it’s happening. Generates foreign currency.

Many other projects are also implemented in Africa. So there are no limits, given the huge energy demand in Africa. Using various energy mechanisms, it is possible to supply energy even to distant countries, not only to neighboring ones.

Do you have plans for other projects in Ethiopia?

We started our presence in Ethiopia with a project awarded in 2019 by Ethiopian Airlines. We represented Ethiopian Airlines and supervised one of its expansion projects at the airport. We are the number one consultant in the aviation sector in the world. Dar and its parent company Sidara are global leaders. Sidara Collaborative is a huge company with several divisions.

We continue to work for Ethiopian Airlines. We have carried out the expansion and renovation of terminal buildings as well as internal works in existing terminals. We also developed the Ethiopian Airlines e-commerce facility, which was recently completed. We have cooperated with Ethiopian Airlines on many projects. Some of them have been opened. The newest one, opened a few weeks ago, is the domestic terminal.

We would like to stay and grow at Ethiopian Airlines. We will do the same with EEP. They are key players in the markets. With the successful projects we have completed in Ethiopia so far, we expect to win more and more projects in both aviation and renewable energy.

What stage is Ethiopian Airlines’ e-commerce center at?

It has been finalized. It is currently at the testing and launch stage.

What is your first project with EEP?

This is the design of the EEP headquarters in Mexico Square. We have completed the conceptual design of the headquarters and are currently in the process of designing the details. It will have over 60 floors. It will be the tallest building in the city. We are still in talks with the client, but the tower will have its own sources of green energy.