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Electric Power


  1. Product Description: Electric power is a form of energy which could be produced by diesel, hydropower coal or electric generators. The electric energy is used for producing electric lights and electric power which re consumed b residential, commercial and office buildings, by factories, garages, workshops and by other entities which consume power. This project idea is for producing and distributing electric power and light in the small urban area of Amhara region using diesel generators.
  1. Market Potential: It is only large urban areas which are supplied with electric power and light in the region. Some small urban centers receive power and light from diesel generators for only a few hours of the day. The rest of the Amhara region uses traditional sources such as wood and cow dung to get power and light. Because of deforestation and decreasing number of cattle, wood and cow dung becoming scarce and expensive. The days of fetching fuel wood from forests and bush land have passed. Only eucalyptus trees have become the only source of fuel wood. In the evenings, Amhara small towns and villages are dank as they were in any hundreds years ago.


This project idea is for installing diesel generators in large villages and small towns for producing and distributing electric power and light. In each large village and small towns, there will be enough number of consumers to justify the establishment of electric power generation and distribution enterprises.


  1. "Source of Raw Material": In this case, we consider diesel fuel and lubricants as the main "raw materials" needed for the operation of the generators. These inputs will be obtained from the domestic supplies of fuel.
  1. Process: The main processes are

à    Acquiring a plot of land where the generator is to be erected.

à    Buying, transporting and installing the generator

à    Extending transmission lines to houses, shops, garages, etc. and

à    Operating the generators


  1. Estimated Investment: For installing a generator that will produce enough power and light for 15,000 people, the investment will be


§         Buildings/shades                              100,000

§         Machinery                                       300,000

§         Working capital                                 80,000



  1. Benefits: Saves forest resources, hence reducing soil erosion; makes life easier for rural and urban people stimulates the local economy.


  1. Location: Small towns and large villages in the region.