About 1.3 billion people do not have access to electricity today , mostly in developing countries rural areas . A rapid growth in energy demand has increased the available options of energy-producing methods in the electric industry. As an electric utility company, maintaining supply and demand balance needs to exploit available energy resources efficiently. Energy is essential for any country's society and economic development. As a result, humans began searching for energy sources a long time ago to meet their mobility, food, and other needs. The early 18th century saw a significant increase in humanity's ability to extract more energy from readily available natural resources such as oil, coal, and gas, which are both inexpensive and easy to harvest .
Renewable energies are one of the energy sources that are gaining popularity these days. Renewable energy supplies are still available and continually regenerate over time . Ethiopia has abundant renewable energy resources (solar, wind, biomass, tidal, wave, and geothermal power) that can be used to electrify remote areas of the world as stand-alone electric energy supply systems. Traditional biomass energy is the most common source of energy in Ethiopia's rural areas, accounting for about 83 percent of the country's total population .
Ethiopia has a wealth of renewable energy resources, with the capacity to produce over 60,000 megawatts (MW) of electricity from hydroelectric, wind, solar, and geothermal sources. Electricity demand has been steadily growing in Ethiopia due to the country's rapid GDP growth over the last decade. Despite Ethiopia's energy capacity, the government is experiencing energy shortages and load shedding. It tries to serve over 110 million people and meet rising electricity demand, which is expected to increase by around 30% per year.
To limit wood usage while improving air quality and reducing CO2 emissions, the government aims to distribute 9 million more powerful stoves by 2015. Access to modern and sustainable energy resources in rural areas, where most of the population lives in poverty, is a pressing issue that has only recently been recognized as critical in the global development agenda . Rural societies are heavily influenced by energy. It is essential for all aspects of human well-being, including access to safe drinking water, health care, education, and agricultural productivity. However, energy access can increase carbon emissions in (least developed countries) LDCs, mainly if fossil fuels are used.
The vast majority of Ethiopia's population lives in rural areas, where modern energy resources are scarce. As a result, in 2011, only 4.8 percent of the rural population had access to electricity, despite the fact that 85.2 percent of the urban population did . Also, in cities, half of the households cook with conventional biomass (wood, dung, and agricultural residues). In rural areas, almost everyone does (except for 0.2 percent who use kerosene and 1.2 percent who use charcoal).
It cannot only satisfy the requirement but also generate enough electricity from clean or renewable sources. The energy sector is highlighted prominently in the strategy; total power demand is expected to rise from 4 TWh in 2010 to more than 75 TWh in 2030. The plan expresses optimism that the energy sector can satisfy the need and generate enough electricity to export. As shown in Table 1, energy production and distribution in Ethiopia include various state and non-state actors. Ethiopia is fortunate to have abundant hydropower resources. The total hydropower capacity is projected to be 650 TWh per year .
For the reduction of poverty and the promotion of economic development, access to modern energy is critical. Communication technology, education, industrialization, agricultural improvement, and water supply systems all necessitate plentiful, efficient, and cost-effective resources. With growing energy demand, rising imported fossil fuel costs, and environmental concerns, renewable energy is a financially intelligent investment. Ethiopia is endowed with several types of renewable energies. Energy access and consumption level is an indicator for the wellbeing and development level of a Household . In this regard, it is possible to forecast the willing of each household to participate/share both in cash and in kind to the project that will be constructed in nearby feature.
Today life is tough without electric energy because it is one of the driving forces in a growing economy, for instance, lights, appliances, and cooling and heating for homes and businesses. However, it is common knowledge that a large proportion of the population in many developing countries lacks access to electricity . According to recent estimates, nearly 33% of the world's population lacks access to electricity . Equal access to modern energy helps raise wages and benefits to advance the development agenda by improving education, reducing indoor air pollution, and improving environmental sustainability.
On the other hand, rural energy access is still underdeveloped in most African countries south of the Sahara . Ethiopia is one of these countries, with restricted access to modern energy and a strong dependence on traditional biomass energy sources. Although the country has experienced rapid economic growth in recent years, maintaining this growth in the future would necessitate a significant increase in energy supplies [26, 27]. Sustainable development is described as hydropower projects built and operated in an economically viable, environmentally friendly, and socially responsible manner. As the most powerful energy, hydropower can currently turn 90% of available energy into electricity, which is higher efficiency than any other type of generation (Jha, 2010). Moreover, even these few households consume tiny amounts of electricity, usually lighting in the evenings (Tsegazeab, 2014). Ethiopia is a significant hydropower potential, and where there is also a tremendous unsatisfied demand .
The Ethiopian government, according to the National Growth and Transformation Plan, aims to achieve universal electrification and is developing large-scale hydroelectric projects to help achieve this objective [26, 27]. To meet the projected rise in domestic electricity demand and export electricity to neighboring countries, the Ethiopian Electric Power Corporation aims to incorporate alternative power plants such as solar, wind, geothermal, fuel oil, and gas-based plants . However, policy advice based on comprehensive energy analysis to improve electricity access and diversification of the energy supply mix to develop a sustainable power sector is lacking in Ethiopia.
Ethiopia has a hydropower capacity of 45,000 MW, a geothermal potential of 7,000 MW, a solar energy potential of 5.5 kWh/sq. m/day annual average daily irradiation, average wind speed of 7 meters per second at 50 meters above ground level 1,350 GW, natural gas 4 TCF (113 billion m3), coal > 300 million tons, and oil shale – 253 million tons . This paper aims to look into the energy distribution system in the Amhara Regional State of Ethiopia to obtain free and environmentally sustainable electricity using green gas.