Energy Africa: Ethiopia, Compact Development and Final Report

Abstract

This report presents the household solar off-grid challenges and proposed actions in Ethiopia in detail, and outlines the main implementing partners of the Energy Africa Compact. DFID will lead the implementation, working in close coordination with the Ministry of Water Energy and Irrigation (MOWIE) and alongside a core group of stakeholders who have endorsed the Compact Ethiopia is fast becoming one of the largest markets for solar lighting products in Africa. Between 2003 and 2007, about 3 million solar lanterns and 150,000 solar home systems (SHS) were disseminated. In 2013, nearly 400,000 pico solar units were distributed and over 350,000 PV modules were sold in 2014, with market values of nearly US$ 9.7 million and US$ 9 million, respectively There have been several government-led initiatives for off-grid household solar technologies. Still, virtually all of the market is for low cost products driven by over-the-counter sales. The market has grown rapidly since 2014, at least partially due to price reductions in equipment. There is almost no experience with PAYGO-type financed PV sales The Government of Ethiopia is increasingly receptive to off-grid electrification approaches. As part of their objective of achieve universal electrification by 2030, they have included a number of off-grid actions. The Growth and Transformation Plan II includes dissemination of 3.6 million solar lanterns, 460,000 Solar Home Systems and 3,600 off-grid PV institutional systems. This research is part of the ‘Technical Assistance Facility to Deliver Africa Energy Compacts’ programme