Off-Grid Solar Lighting Up Ethiopia

Author:
The World Bank

For the millions of people living in remote rural areas of Ethiopia who lack access to the power grid or cannot afford electricity, solar energy represents an important first step on the energy access ladder. Instead of relying on kerosene, candles, dry cell batteries and other fossil fuel-based sources of power, they can now turn to off-grid solar to light up their homes, watch television and charge mobile phones, thanks to an initiative of the Government of Ethiopia supported by the World Bank.

"For households at the base of the economic pyramid, off-grid solar can dramatically boost the quality of life,” says Yemenzwork Girefe, Director of the Export Credit Guarantee & Special Fund Administration at the Development Bank of Ethiopia (DBE). ”Energy access has a large impact on the well-being of society in general, women and children in particular, in countries like Ethiopia where access to electricity is low for the vast majority of the population."

The Development Bank of Ethiopia (DBE) in partnership with the International Development Association (IDA), the World Bank’s fund for the poorest countries, is providing working capital loans to private sector household solar providers, as well as micro-finance to households for the purchase of solar lanterns and Solar Home Systems (SHS) through a $20 million credit line under the Electricity Network Reinforcement and Expansion Project (ENREP). Another $20 million line of credit was approved by the World Bank Board of Directors in May 2016 as part of $200 million in additional financing to ENREP.

The article's full-text is available here.

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