Ashish Khanna brings over 26 years of unparalleled experience in advancing energy access and sustainable development across Asia, Africa, and the Middle East. Having led transformative programs with the World Bank and global initiatives like Mission 300 — aimed at delivering electricity to 300 million Africans by 2030 — Khanna stands at the forefront of the renewable energy revolution. As the newly appointed Director General of the International Solar Alliance (ISA), he shares his insights on collaborating with Ethiopia to expand solar energy, the groundbreaking 400 MW solar park project, and the broader vision to harness solar power as a catalyst for economic growth and climate resilience across the continent. In this exclusive interview with Capital, Khanna discusses how strengthened partnerships, innovative technologies, and supportive policies can unlock Ethiopia’s vast solar potential and contribute to the global ambition of mobilizing $1 trillion in solar investments by 2030. Excerpts;

Capital: What is the overarching goal of the ISA’s partnership with Ethiopia, and how does it align with Ethiopia’s national energy strategy?

Ashish Khanna: We have established a country partnership framework between the ISA and Ethiopia, which will enable us to customize our support based on Ethiopia’s national energy plan. A significant focus is the fact that nearly half of Ethiopians lack access to electricity, particularly those living in remote areas, such as pastoral regions, where extending the grid is challenging. Therefore, solar energy is the most cost-effective solution for providing access to electricity.

Additionally, many farmers require solar applications, such as solar pumps, to enhance their income. Farmers using diesel pumps, like coffee growers, can transition to solar, which offers a significant cost advantage—solar pumps are only about 25% of the cost of diesel pumps.

Capital: Can you elaborate on the planned 400 MW solar power park? How does this project connect with the ISA’s Solar Park Programme, and how does it fit into the broader goal of enhancing the agricultural sector with solar energy?

Ashish: This program will be Ethiopia’s first competitively bid solar park, which is crucial. For context, India has successfully deployed nearly 115,000 megawatts of solar capacity in the last decade, with about 90% coming from solar parks. Getting the 400 megawatt project right could pave the way for numerous additional projects. Another positive aspect is that this project is attracting private sector investment, allowing the government to concentrate its resources on distribution and necessary reforms while the private sector invests more in generation.

Capital: The ISA’s mission is to mobilize $1 trillion in solar investments by 2030. How does the collaboration with Ethiopia contribute to this ambitious target?

Ashish: The $1 trillion target is a global benchmark, but what truly matters is how we define the country partnership framework. The 400 megawatt project is expected to generate about $400-500 million in private sector investment.

When we include solar pumps and the agricultural program, that will lead to additional investments. However, beyond the financial aspects, the focus is on job creation and income generation for Ethiopians. Since most Ethiopians live in rural areas, it is essential for them to experience the benefits of solar energy, whether through enhanced income from solar pumps or other applications.

For example, countries that have implemented solar pumps see significant increases in crop production and irrigated land. Additionally, solar technology can replace costly diesel pumps currently used for drinking water, leading to substantial savings for the government. Various applications across different sectors will benefit from this initiative.

Capital: Can you explain how the Solar Technology Application Resource Centre (STAR-C) to be established in Ethiopia will function and what skills it will help develop for the local workforce?

Ashish: Ethiopia is set to have the first STAR-C of the International Solar Alliance established at Addis Ababa University. During our visit, we spoke with both the Dean of the College of Science and Technology and the President of the university about advancing STAR-C into a testing lab. It’s crucial to have proper measurement and testing facilities for solar equipment, such as solar pumps and solar panels, to ensure quality control. Additionally, training individuals to maintain these installations can generate numerous jobs. Furthermore, STAR-C will support the incubation of startup ideas among local youth. We discussed these initiatives and aim to scale them as Ethiopia expands its solar capacity.

Capital: Besides the 400 MW solar power park, is Ethiopia involved in other solar energy programs, such as the 700 kW solar mini-grid and the 100 kWp solar rooftop car parking? What are the main objectives of these programs?

Ashish: Consider a car park for a residential area or office; if you cover it with solar panels, it not only provides shade but also generates energy, which can reduce electricity bills. Any excess energy can be sold back to the grid, especially on weekends. We implemented this as a demonstration project within the ministry’s premises, and we believe it has potential for replication by local property owners.

Regarding the 700 kW mini-grid, it is vital for villages. For example, rice mills or injera processors can leverage this electricity to boost their income, in addition to providing lighting and charging needs for residents. Mini-grids can also supply power to health facilities, which is crucial for vaccine storage and minor operations.

The 700 kW mini-grid aims to support economic activities and household energy access. This pilot project, if successful, could be replicated in thousands of Ethiopian villages, providing a foundation for energy access in rural areas across the country’s vast landscape.

Capital: What are the key regulatory hurdles that need to be addressed to accelerate the expansion of solar energy in Ethiopia, according to the ISA?

Ashish: We need to conduct further research on this topic, as it is an area we wish to explore more deeply. From our recent session, which included private sector participants and others, it became clear that there are elements related to harmonizing policies and standards.

Additionally, reducing or possibly eliminating taxes could be beneficial. Financing is another significant issue; if collateral requirements are excessive, they must be backed by reliable cash flows and data. These were some of the key points raised during the panel discussion, but further study is necessary.

Capital: Can you tell us more about the National Focal Point Support Units (NSUs)? How will their establishment expedite project implementation in Ethiopia?

Ashish: To implement large-scale programs, as outlined in the Country Partnership Strategy, it is essential to have personnel on the ground in Ethiopia. Therefore, we aim to establish a National Focal Point Support Unit in Ethiopia to serve as the daily interface for large solar parks, agricultural implications, mini grids, solar home systems, and solar rooftops.

We may also collaborate with the government on solar mobility and digitization. All these areas will require a local support team, and we anticipate forming teams of about three to four members who will be based in Ethiopia, working alongside our head office and international teams on these projects.

Capital: What is the significance of Ethiopia’s inclusion in the Green Hydrogen (GH) value chain, and what potential does the country have in this sector?

Ashish: Countries with abundant, inexpensive renewable energy are prime candidates for producing green hydrogen. If Ethiopia can create a framework to attract large-scale investments in renewable energy and solar power, it could potentially become a source of green hydrogen.

However, from the perspective of the Ethiopian government, the priority will likely be to provide electricity for its own citizens before considering exports.

Capital: What are the major challenges faced by the ISA and the Ethiopian government in implementing these large-scale solar energy projects? What are your plans to address them?

Ashish: We will have a clearer understanding of these challenges once the Country Partnership Strategy is finalized. We have just signed the country partnership framework, and we will soon develop project reports to identify financing challenges, policy obstacles, capacity-building issues, and timelines for project implementation. We expect to have more comprehensive answers in the next three to four months.