1.

Background
Energy is the fuel for growth of the world. An increased access to electricity enhances opportunities
for industrial development and improves health and education. According to goal 17 of the United
Nation Sustainable Development Goals (SDGs), which replace the Previous Millennium
Development Goals 7 sets to ‘‘Ensure access to affordable, reliable, sustainable, and modern energy
for all”. However, due to rapid growth of electricity demand and scares of resources, addition to
energy transitions, energy efficiency and effectiveness a cost-efficient and an optimized complex
energy policy decisions have to be modeled and implemented. In this regard, for the benefit of
environmental protection, a pollution free (Renewable Energy Sources) were expected the play a key
role in future energy system.
Though, Ethiopia was blessed by renewable energy sources like hydro, wind, solar, geothermal and
biogas literatures indicates that, the country was utilized only nearly 3% of its potential. Hence, lack
of electricity access to rural areas and sever electricity interruptions were observed throughout the
nation. Moreover, due to the location of generation and load were far away from each other, there is
a significant power loss (estimated to 30% in Ethiopia).

2. Objectives
The objectives of this study were:
1. To study and evaluate the current energy system and policy of Ethiopia,
2. To simulate the existing energy system
3. To design and propose a policy regarding the future energy scenario in Ethiopia
3. Methodology
Throughout this study, selected scientific literatures will be reviewed, electricity demand forecasting
and energy source potential assessments for some selected areas Ethiopia will be carried out,
evaluation of policies and a cost-effective (an optimized) energy model will be proposed. Finally,
energy policy formulation and recommendation will be proposed. Of the several prominent models,
which have been developed over many decades and which span wide topical areas. MARKAL (the
MARKet ALlocation) model was proposed. As it is the most predominant model. Throughout the
study, including MATAB, different dynamic cost-optimizing modeling tool will be used. The quality
and validity of the research result will be ensured through publication of research articles on
scientific journals.