World Bank: $500 Million For Ethiopia’s Electrification

World Bank Approves $500 Million For Ethiopia’s National Electrification Program; To Be Disbursed Through IDA, Funds To Be Used For Solar PV Deployment & Closing Gender Gap, Among Others
11:26 PM (Beijing Time) - 07. April 2021

While the World Bank is supporting large scale on-grid solar development in Ethiopia through its Scaling Solar program, it has now also approved $500 million to support distributed energy generation and electrification for the country. At the same time, closing the gender gap is also a main feature. Pictured is an Ethiopian farmer. (Photo Credit: Dana Smillie/World Bank)

Key Takeaways

  • The World Bank has approved $500 million credit for IDA to distribute for Ethiopia’s electrification program, under ADELE project
  • Funds will be deployed for solar mini-grids and off-grid technology, while also encouraging the involvement of women in these sectors
  • Target is to bring electricity services for close to 5 million people, 11,500 enterprises and 1,400 health and education facilities

The International Development Association (IDA) has raised $500 million as credit from the World Bank to be used to support Ethiopia’s goal of achieving universal electricity access by 2025, under its National Electrification Program (NEP).

The World Bank’s group member for the poorest, IDA will provide this credit to the African country under the Access to Distributed Electricity and Lighting in Ethiopia (ADELE) Project which is to be implemented by Ethiopia’s Ministry of Water, Irrigation, and Electricity, the Ethiopian Electric Utility and Development Bank of Ethiopia.

Solar PV mini-grids, and individual solar system for both household and production use, is one of the main features of ADELE, the bank described, and the credit will be deployed to encourage such innovative solutions.

These systems will be deployed through a combined approach of public and private delivery modalities to further enhance affordability and inclusion. It is also aimed at increasing the percentage of women in mini-grid sector and off-grid technology value chain, thereby closing the gender gap.

Through ADELE project, the bank targets to provide electricity services for close to 5 million people, 11,500 enterprises and 1,400 health and education facilities.

“ADELE can contribute to achieving near universal electrification of secondary schools and health centers,” said World Bank Africa Regional Director for Infrastructure, Riccardo Puliti. “Closing the energy gap and enabling the productive use of renewable energy in rural and deep-rural areas will be crucial in the post-COVID-19 recovery phase.”

The World Bank is also helping utility scale solar power development in Ethiopia through its Scaling Solar Program under which ACWA Power won 250 MW, and a 500 MW solar power tender was scaled up to 750 MW in May 2019 (see Ethiopia Selects ACWA Power For 250 MW Solar Capacity).

In March 2021, Masdar entered a memorandum of understanding with Ethiopia to develop 500 MW solar power capacity that is scheduled to come online in 2022 (see Masdar To Develop 500 MW Solar PV Capacity In Ethiopia).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani