Ethiopian Electric Inaugurates Four Solar Power Projects

Ethiopian Electric Utility, as part of its efforts to provide solar power access to areas located far from the main electricity grid, inaugurated and opened for service four solar projects constructed in Hawe Gudina Woreda of West Hararghe Zone, Oromia Region.

The projects, constructed in the Torben, Bate, Halo Goba, and Haro Oba kebeles, were built at a total cost of 769 million birr through a loan obtained from the World Bank.

The projects have the capacity to benefit more than 5,276 households, including social institutions. At present, more than 844 households in the four kebeles have begun benefiting from the service.

Speaking at the inauguration ceremony, State Minister of the Energy Sector at the Ministry of Water and Energy, Hon. Dr. Eng. Sultan Wali, stated that the project was implemented through the Ethiopia Electricity and Light Access (ADELE) Program, which is supported by the World Bank and other partners.

He added that, of the 98 rural solar mini-grids planned nationwide, 38 are being constructed in the Oromia Region, and that 6 of the 8 projects allocated to West Hararghe have now begun providing service.

Ethiopian Electric Utility Communications Executive Director, Mr. Melaku Taye, said that the institution is carrying out various activities to deliver reliable and quality service. He stated that, in the 2018 fiscal year, in addition to those inaugurated today, the institution has been able to connect two towns in West Hararghe Zone to the main grid and provide two kebeles with electricity generated from solar power.

Across the four projects, 7.74 km of medium-voltage lines and 30.29 km of low-voltage lines have been installed, along with 10 transformers. Torben has a generation capacity of 125 kW, Bate 200 kW, Halo Goba 350 kW, and Haro Oba 225 kW.

Our institution has enabled 16 rural kebeles located far from the main electricity grid in the Oromia Region alone to benefit from solar power, making more than 5,280 households electricity users.

Reports show that Ethiopia has embarked on a massive energy diversification strategy to correct an overwhelming, 90% over-reliance on hydropower. While mega-dams like the Grand Ethiopian Renaissance Dam (GERD) drive industrial ambitions, seasonal droughts regularly expose the vulnerability of a hydro-centric grid. To secure its energy future and meet its goal of universal electrification by 2030, the East African nation is rapidly pivoting toward its vast, untapped solar resources.

Historically, solar power has contributed less than 1% to Ethiopia’s national grid. However, this metric is poised for an exponential shift, with the market projected to see a 90.4% solar capacity growth rate through 2030. Ethiopia boasts an exceptional solar resource regime, receiving an average solar irradiance of 5.5 to 6.5 kWh per square meter per day.

To convert this asset into electricity, state-run utility Ethiopian Electric Power (EEP) has shifted to Public-Private Partnerships (PPPs). Major utility-scale projects—such as the 225 MW auction for the Gad and Weransso sites—aim to inject photovoltaic power directly into the national grid. More recently, massive foreign direct investments have expanded the country’s landscape, including a historic investment license for a multi-GW clean energy initiative.

Additionally, manufacturing capacity has spiked following the inauguration of TOYO Corporation’s 2 GW solar-cell factory. Reports tracked by fDi Intelligence even highlight a dramatic surge in solar cell exports from Ethiopia, aligning with the country’s industrialization push.

The most immediate impact is happening off the main grid. According to the Global Solar Council, about 56 percent of the population remains without electricity, creating an enormous addressable market for off-grid and mini-grid commercial systems. Pay-as-you-go (PAYG) solar home kits are bridging this divide, allowing rural households to purchase clean lighting, phone charging, and refrigeration. Simultaneously, the International Water Management Institute (IWMI) notes that solar-powered irrigation pumps are replacing costly diesel engines, allowing thousands of smallholder farmers to cultivate crops year-round.

Despite immense promise, sharp structural headwinds persist. A severe shortage of foreign currency reserves makes it difficult for local solar distributors to import high-quality components. Because international manufacturers require payment in hard currency, local supply chains frequently stall. This forex crunch has led to an influx of cheap, uncertified counterfeit equipment that fails prematurely, burning consumer capital and damaging public trust.