Chapter 1: INTRODUCTION

Electricity generation, transmission and distribution are three stages of delivering

electricity to consumers. The delivery of electricity to consumers in Ethiopia has
multidimensional problems. My study focused on factors affecting utilization of electric
power distribution for the industrial enterprises in Addis Ababa Lemi Sub city woreda 08.
The major factors of the distribution system in the study area listed as: power
fluctuations, illegal use of electricity, areas of industries from the distribution transformer,
the capacity of transformer, natural and artificial phenomena, infrastructure, power factor,
poor maintenance culture,
electrical power transmission line losses due to long distance between generating
stations and load centers etc.

1.1 BACKGROUND OF THE STUDY

Ethiopia is undergoing a rapid transition that is quickly evolving the structure of the
economy, the infrastructure investment landscape and the nation’s demographics. The
Government of Ethiopia (GoE) has embarked on a structural transformation of the
economy and society. GoE has completed its first phase of the Growth and
Transformation Plan (GTP I) (2010/11– 2014/15), which set a long-term goal for
Ethiopia to become a middle-income country by 2025, with a GDP growth rate of at least
11.2 percent per year during the plan period. During 2011- 15, Ethiopia grew at a rate of
10 percent. A second phase of the GTP (GTP II) is under implementation for the period
2015-2020. The GTP II puts a strong emphasis on structural transformation,
industrialization, urbanization, and export promotion. Massive public infrastructure
investment has been at the center of the country’s economic strategy. Ethiopia was able
to achieve a substantial expansion of energy, road, railway, and telecom infrastructure,
financed by domestic and external public borrowing.(1)
Without industrialization, it is difficult to imagine economic growth of any nation; the
long run objective of reducing the poverty achieved by facilitating a well conducive
environment for the employment generating is unthinkable without industrial
transformation. Currently most developing nations are working on creating employment
opportunities for the fast increasing unemployed youth that is occupying the urban
space.(2)
To carry on the revolution of industrialization leading the economy, utilization of
sufficient electric power is mandatory. Now days the demand of electric power is highly
increases and the nations are civilized to use electric. According to this, there is a
challenge for the utilization of energy to the industries. The major factors of the
distribution system in the study area listed as: power fluctuations, illegal use of
electricity, areas of industries from the distribution transformer, the capacity of
transformer, natural and artificial phenomena, infrastructure, power factor, poor
maintenance culture,
electrical power transmission line losses due to long distance between generating
stations and load centers etc.
1.2 STATEMENT OF THE PROBLEM

Even though, the plan shows as such very interesting and reachable. The problems of

utilization of electric power for the industries are still affected. This problem caused by

some factors such as power fluctuations, illegal use of electricity, areas of industries from

the distribution transformer, the capacity of transformer, natural and artificial phenomena,

infrastructure, power factor, poor maintenance culture,

electrical power transmission line losses due to long distance between generating stations

and load centers , cost of installments etc.

If we not know, the factors that affect the distribution of electric power and mitigate

factors, the revolution of industrialization will become unthinkable. These cause

unemployment, poverty, and highly affect the GDP of the country.

Even if there are literature s which studies, the factors affecting generation transmit ion,

distribution, and customer satisfaction. The is a gap between my study this gaps are

satisfaction comes when using efficiently use electric powers. In addition, other studies

showed for the household only. However, my study will show for the industrial

customers that affect the utilization of electricity.

1.3 OBJECTIVE OF THE STUDY

1.3.1 GENERAL OBJECTIVE

The general objectives of my study is that to identify or assess which factors are more
affect the industries utilization of electric power.
1.3.2 SPECIFIC OBJECTIVE
This study also will shows that the industries when utilize sufficient electric power, will contribute

the GDP of the country. And decreasing the poverty indirectly by promoting employment.

References:

1. Moges M. A STUDY ON ELECTRIC ACCESESS RATE IN HOUSEHOLD LEVEL In Case Of Dire Dawa

Administration DIRE DAWA ELECTRIC UTILITY REGIONAL PLANNING MANAGER A Study on Electric

Accesses rate in Household level in case of Dire Dawa Administration.

2. The S, Of R, Of E, City B. A SSESSING THE ROLE OF SME S IN I NDUSTRIAL D EVELOPMENT.

2019;7(3):921–31.