Rural Electrification Increases Contributions to Green Economy

The Rural Electrification Fund Office (RE) plans to buy and distribute 4,404 solar home systems (SHS) and 24 institutional solar systems in 2015/16. It is also working on a new five-year project for the purchase and distribution of 200,000 SHS and 600,000 improved cook stoves.

These projects are part of Ethiopia’s climate resilient green economy facility.

Managed under the auspices of the Alternative Energy Technology Development & Transformation Directorate of the Ministry of Water Irrigation & Energy (MoWIE), the programme works with different donor organisations to deliver the SHS and institutional solar systems to parts of the country that are not connected to the national grid. The directorate is also forming a new team for the new SHS and stove project, says Yisehak Seboka, RE head at the Ministry.

MoWIE bought 11,488 SHS in the last fiscal year, which ended on July 7, 2015, and the installation of these systems will take place in the first quarter of the current fiscal year 2015/16.  For a total of 25,000 SHS, in the past two budget years, the RE was allocated 1.5 billion Br out of the requested 2.5 billion Br in the fiscal year 2014/15. Similarly, the budget allocation for this fiscal year is half the requested amount.

There are 700 technicians in the country that will be given refresher training and will start installation, says Yisehak.

The purchase and distribution of SHS are based on demand assessment made at the wereda level by local authorities. Those who express demand cannot change their minds once the order is made, says Yisehak.

SHS’ cost is also decreasing compared to the purchase cost in the past two fiscal years. In 2013/14, the cost of a 130 watt SHS was 22,000 Br, which fell to 16,000 Br in the following fiscal year. The Office distributes SHS between eight and 130 watts.

MoFED had approved only half of the 52 million Br budget that had been requested for the RE, which uses government budget for salaries, per diems and training. Responding during the Budget hearing, Abraham Tekeste (PhD), state minister for Finance & Economic Development said that RE had more financial resources from donors including the United Nations Development Programme (UNDP), Power Africa, Energy Plus, the World Bank, and the United Nations Capital Development Fund (UNCDF). These donors contribute 80pc to 85pc of the total budget, the balance coming from the government, according to Yisehak.

In addition to the distribution of SHS, the programme will engage in off-grid investment plan implementation, which includes the participation of the private sector in the generation and selling of electricity.

The new project, dubbed ‘Promoting Sustainable Rural Energy Technology for Household & Productive Uses’, will last for five years starting from 2016. Contributors include UNDP, the Global Environment Fund and UNDCF with four million dollars, 900,000 dollars and 800,000 dollars, respectively.


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