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Ethiopia

Case Studies

The Ethiopia case study focuses on piloting solar-powered irrigation systems to improve agricultural productivity and water access in rural areas. Implemented under the Green People’s Energy (GBE) initiative by GIZ, the project tested solar irrigation in smallholder farms to replace diesel pumps and manual irrigation. It involved training farmers, providing technical support, and ensuring financial viability through affordable solutions. The pilot demonstrated that solar irrigation can significantly reduce operational costs, improve crop yields, and enhance resilience against climate variability, while promoting sustainable water management.

The impact of this initiative is substantial: it reduces reliance on fossil fuels, lowers greenhouse gas emissions, and supports Ethiopia’s renewable energy and agricultural development goals. Socially, it empowers farmers by improving income stability and food security, while creating opportunities for local technicians and service providers. The success of the pilot sets the stage for scaling solar irrigation across Ethiopia, contributing to climate adaptation, rural electrification, and sustainable livelihoods.

Read more: Piloting Solar Irrigation in Ethiopia – Enhancing Food Production and Climate Adaptation at the Same Time

The Lowland Solar Water Pumping initiative, supported by USAID in Ethiopia, was designed to provide reliable and sustainable water access for pastoral and agro-pastoral communities in arid lowland regions. The objective was to replace diesel-powered pumps with solar-powered systems to improve water availability for livestock, irrigation, and domestic use. The initiative enhanced climate resilience, reduced fuel costs, and supported livelihoods in drought-prone areas, while also promoting community ownership and maintenance of solar infrastructure.

The project was part of a broader USD 50 million climate-resilient water program, with USD 45 million approved by the Green Climate Fund (GCF) in 2024 to scale solar water pumping in drought-prone regions. About 90% of GCF support was provided as grants, complemented by USAID technical assistance and Ethiopian government co-financing. This blended finance approach enabled community-led schemes and empowered marginalized groups, while reducing operational costs compared to diesel systems. The financing model also incorporated life-cycle cost analysis to ensure affordability and sustainability, creating a replicable framework for climate-resilient water services in Africa.

Impact and Inference:
This project demonstrated how solar-powered water systems can transform resource-scarce environments by ensuring consistent water supply, reducing environmental impact, and improving food and water security. It also highlighted the importance of integrating renewable energy with local development goals, especially in fragile ecosystems and conflict-sensitive regions.

Read more: Microsoft Word - Lowland WASH Activity Briefing Note Solar Success in Water Services final

The Integrated Regional Energy Strategy, supported by the Africa Clean Energy Technical Assistance Facility (ACE–TAF), was developed to promote coordinated energy planning across regions in Ethiopia. The strategy aimed to align national and sub-national energy priorities, improve access to clean energy, and support inclusive development through data-driven decision-making. It emphasized stakeholder engagement, policy harmonization, and capacity building to ensure that energy investments are equitable, efficient, and climate-resilient.

Impact and Inference:
This initiative demonstrated the value of integrated planning in overcoming fragmented energy governance and infrastructure gaps. It provided a framework for scaling renewable energy, optimizing resource allocation, and fostering regional cooperation. The strategy is especially relevant for countries with diverse geographic and socio-economic contexts seeking to balance national goals with local needs.

Read more: Ethiopia-Integrated-Regional-Energy-Strategy-1.pdf

Ethiopia has a large agrarian economy and ambitious renewable energy targets. Many rural areas lack reliable electricity, and farmers often depend on costly diesel pumps. Solar irrigation aligns with Ethiopia’s climate-smart agriculture goals, offering a sustainable solution to boost productivity, reduce emissions, and empower smallholder farmers

The Solar-Powered Irrigation initiative under the RERED II project in Bangladesh was launched to replace diesel-based irrigation pumps with solar-powered alternatives, aiming to reduce fuel dependency, lower operational costs, and promote sustainable agriculture. The program targeted smallholder farmers, offering subsidized solar irrigation systems and technical support. It successfully improved agricultural productivity, reduced greenhouse gas emissions, and enhanced energy security in rural areas.

Impact and Inference:
This initiative demonstrated how renewable energy can directly support agricultural livelihoods, especially in regions where grid access is limited and fuel costs are high. By integrating solar technology into irrigation, the program fostered climate resilience, reduced input costs for farmers, and promoted year-round cultivation. It serves as a replicable model for linking clean energy with food security and rural development.

Read more: Solar-Powered Pumps Reduce Irrigation Costs in Bangladesh

Ethiopia has a large rural population and ambitious electrification targets. Off-grid solar solutions can play a critical role in reaching last-mile communities, supporting agricultural productivity, education, and healthcare, while aligning with the country’s green growth strategy

The Off-Grid Electricity Access Project (OGEAP) in Benin was launched to expand energy access in underserved rural communities through solar mini-grids and standalone solar systems. Its objective was to bridge the energy gap for households, schools, and health centers by leveraging private sector participation and concessional financing. The project successfully demonstrated how decentralized renewable energy solutions can be scaled to meet basic electricity needs, improve public service delivery, and stimulate local economic activities.

Impact and Inference:
OGEAP highlighted the effectiveness of off-grid solar solutions in accelerating universal energy access, especially in regions where grid extension is economically unfeasible. It also underscored the importance of enabling policies, blended finance, and community engagement in ensuring long-term sustainability. The model is adaptable to other countries facing similar infrastructure and energy access challenges.

Read more: Enabling Off-Grid Energy Investment in Benin

Ethiopia’s agriculture sector is highly climate-sensitive, and many regions face water scarcity and unreliable energy access. SMGs can provide a sustainable solution for irrigation, empower women in farming communities, and align with Ethiopia’s goals for climate-smart agriculture and rural development.

The Solar Market Gardens (SMG) initiative by SELF in Benin aimed to empower women farmers by providing solar-powered drip irrigation systems for community gardens. The objective was to enhance food security, improve nutrition, and generate income through sustainable agriculture. By integrating solar energy with efficient irrigation, the project enabled year-round cultivation, reduced water usage, and supported climate-resilient farming practices in arid regions.

Impact and Inference:
The initiative demonstrated how solar energy can be leveraged not just for electrification but also for agricultural empowerment. It created a replicable model for linking clean energy with gender-inclusive development, food production, and climate adaptation. The success of SMGs underscores the potential of decentralized solar solutions in transforming rural livelihoods.

Read more: Self's Solar Market Gardens | Benin | UNFCCC

Ethiopia’s energy strategy includes expanding solar generation to complement its hydro-dominated grid. Utility-scale solar projects like Ferke can help meet rising demand, improve grid reliability during dry seasons, and support Ethiopia’s climate resilience and electrification goals.

52 MW IPP with €28M investment, targeting underserved northern regions. The Ferke Solar Project, supported by the Emerging Africa Infrastructure Fund (EAAIF), was developed in Côte d'Ivoire to expand clean energy generation through grid-connected solar PV infrastructure. The project’s objective was to diversify the national energy mix, reduce carbon emissions, and improve electricity supply reliability in underserved regions. By leveraging blended finance and private sector participation, the initiative contributed to Côte d'Ivoire’s renewable energy targets and demonstrated the viability of utility-scale solar in West Africa.

Impact and Inference:
The Ferke Solar Project exemplifies how strategic investment in solar infrastructure can enhance grid stability, reduce fossil fuel dependency, and support national climate goals. It also highlights the importance of public-private partnerships and concessional financing in scaling renewable energy in emerging markets. The model is well-suited for replication in countries with similar energy access and climate challenges.

Read more: EAAIF invests EUR 28 million in 52 MW solar plant in northern Côte d’Ivoire

Ethiopia’s growing energy demand and reliance on hydropower make it vulnerable to seasonal variability. Scaling Solar’s standardized approach can help Ethiopia attract private investment, diversify its energy mix, and meet its electrification and climate goals efficiently.

60 MW PPP solar project under World Bank’s Scaling Solar framework. The Scaling Solar Program, led by the International Finance Corporation (IFC), is a turnkey solution designed to help governments rapidly procure and develop grid-connected solar power through competitive tenders. In Côte d'Ivoire, the program aimed to attract private investment, reduce electricity costs, and expand clean energy generation. It provided a standardized framework for project development, including legal, financial, and technical support, resulting in faster deployment and lower tariffs for solar electricity.
The program uses a one-stop-shop model combining IFC advisory services, World Bank guarantees, and Multilateral Investment Guarantee Agency (MIGA) risk mitigation instruments. This structure reduces project risk and cost of capital, enabling private developers to secure financing under long-term Power Purchase Agreements (PPAs). The approach blends concessional finance and commercial debt, ensuring affordability and bankability for Independent Power Producers (IPPs).

Impact and Inference:
The program demonstrated how structured public-private partnerships and transparent procurement processes can accelerate solar adoption in emerging markets. It reduced project risks, improved investor confidence, and delivered cost-effective solar energy. The model is especially effective in countries with strong political will but limited institutional capacity for renewable energy development.

Read more: Côte d'Ivoire | Scaling Solar

Ethiopia’s energy mix is heavily reliant on hydropower, which is vulnerable to climate variability. Utility-scale solar can diversify generation sources, enhance grid reliability, and contribute to Ethiopia’s green growth and electrification targets.

The Boundiali Solar Plant, supported by KfW and the European Union, is one of Côte d'Ivoire’s first large-scale grid-connected solar power projects. With a capacity of 37.5 MW, the plant was developed to diversify the country’s energy mix, reduce greenhouse gas emissions, and improve electricity supply in northern regions. The project combined concessional financing with technical assistance, showcasing how international cooperation can accelerate clean energy infrastructure in West Africa.

Impact and Inference:
The Boundiali Solar Plant demonstrated the feasibility and benefits of utility-scale solar in a region traditionally reliant on thermal and hydroelectric sources. It contributed to national energy security, supported climate goals, and laid the foundation for future renewable investments. The project also highlighted the importance of regional equity in energy access and the role of donor-backed initiatives in de-risking solar investments.

Read more: The first solar power plant in Côte d'Ivoire supplies electricity for 35,000 households

With a large rural population and uneven grid coverage, Ethiopia can benefit from decentralized electrification models. ADB’s approach aligns with Ethiopia’s national electrification strategy and can support agricultural productivity, education, and healthcare in off-grid regions.

The Rural Electrification Support Project, funded by the Asian Development Bank (ADB), was implemented in Fiji to expand access to reliable electricity in remote and underserved communities. The project’s objective was to deploy decentralized renewable energy systems—primarily solar PV and mini-grids—to improve living standards, support education and healthcare, and reduce reliance on diesel. It emphasized community ownership, capacity building, and gender-inclusive development, making it a model for sustainable rural electrification.

The total project cost is estimated at USD 3.4 million, financed primarily through a USD 3 million grant from ADB’s Japan Fund for Prosperous and Resilient Asia and the Pacific, with an additional USD 0.4 million contribution from the Government of Fiji. The grant modality was chosen over lending to reduce fiscal burden and accelerate implementation in underserved regions. The financing structure integrates technical assistance for O&M planning and gender-inclusive capacity development, aligning with Fiji’s national target of 100% renewable energy-based rural electrification by 2036.

Impact and Inference:
This initiative demonstrated how targeted investments in renewable energy can transform rural economies and improve social outcomes. It highlighted the importance of inclusive planning, local engagement, and technical support in ensuring long-term sustainability. The project serves as a replicable framework for countries seeking to close rural energy gaps while advancing climate goals.

Read more: 57056-001: Rural Electrification Support Project | Asian Development Bank

Ethiopia’s large agrarian economy and vulnerability to drought make solar irrigation a strategic solution. It can reduce dependence on rain-fed agriculture, improve yields, and support climate-smart farming in off-grid rural areas.

The Solar-Powered Irrigation initiative, implemented under the GIZ–Green People's Energy for Africa (GBE) program in Ghana, aimed to improve agricultural productivity and climate resilience by replacing diesel pumps with solar-powered irrigation systems. The project targeted smallholder farmers, offering technical training, financing models, and infrastructure support. It successfully enhanced food security, reduced operational costs, and promoted sustainable water management in rural farming communities.

Impact and Inference:
This initiative demonstrated how solar irrigation can empower farmers, reduce carbon emissions, and support year-round cultivation. It highlighted the importance of integrating renewable energy with agriculture to address both energy poverty and food insecurity. The model is scalable and adaptable to various agro-ecological zones across Africa and beyond. It is a RBF model with 40–50% subsidy, benefiting 54 farmers. 

Read more: Results Case Study: Fostering Investments into Solar Powered Irrigation through Results Based Financing in Ghana

Ethiopia’s arid regions and recurrent droughts affect over 10 million people annually. Solar desalination can provide decentralized water solutions for rural communities, complementing Ethiopia’s renewable energy expansion strategy.

The Solar Desalination Systems initiative in Cape Verde addresses freshwater scarcity by using solar-powered desalination to convert seawater into potable water. Its objective is to provide sustainable drinking water solutions for island and coastal communities while reducing reliance on expensive diesel-powered desalination plants. The system integrates photovoltaic panels with reverse osmosis technology, ensuring low operational costs and minimal carbon footprint.
The impact has been significant: Cape Verde’s solar desalination plants produce up to 1,500 m³ of fresh water daily, reducing fuel imports and cutting CO₂ emissions by over 1,000 tons annually. This approach has improved water security for thousands of residents and demonstrated that renewable-powered desalination can be a viable solution for climate-vulnerable regions. The key inference is that solar desalination systems can simultaneously tackle water scarcity and energy sustainability challenges in areas with abundant solar resources.

Read more: FuturaSun in Cape Verde: clean energy for clean water

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