Ethiopia has received a sum of US $8M in mixed financing for the electrification and productive use of solar mini-grids in rural.
The funding approved by the African Development Bank (AfDB) Group’s Sustainable Energy Fund for Africa (Sefa) was provided as concessional loans, grants, and risk mitigation. It will support a pilot project aimed at testing the commercial viability and effectiveness of integrating mini-grids with agro-industrial operations across nine sites in Ethiopia.
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DREAM programme
The projects will fall under the DREAM (Distributed Renewable Energy-Agriculture Modalities) programme. The DREAM programme, developed in collaboration with the Global Energy Alliance for People and Planet (GEAPP) and supported by the European Investment Bank (EIB), addresses the water-energy-food nexus by using off-grid solar energy for multiple purposes, including irrigated agriculture and drinking water.
The Ethiopian segment of the initiative involves partnerships with the Ministry of Irrigation and Lowlands, the Ministry of Agriculture, and the Agricultural Transformation Institute (ATI). Daniel Schroth, AfDB Group’s Director of Renewable Energy and Energy Efficiency, highlighted the innovative nature of the DREAM programme and the significant role of Sefa in attracting private sector investment in energy access.
In Ethiopia, which is significantly affected by drought, the DREAM initiative will facilitate the deployment of 200 solar mini-grids, contributing to both electrification and the productive use of electricity in rural areas. Sefa’s contribution will cover 50% of the funding required for this project.
