Ethiopia has taken a significant leap toward harnessing its abundant solar energy resources through a historic partnership with the International Solar Alliance (ISA). Announced in collaboration with the Ethiopian Ministry of Water and Energy, this partnership aims to address the country’s energy poverty and drive economic growth by expanding access to clean and affordable solar power.
A central goal of the alliance is to align ISA’s support with Ethiopia’s National Energy Plan, targeting electricity access for more than half of the population currently living without power. This initiative holds particular promise for residents of remote and semi-pastoral rural areas, where traditional grid extension is economically challenging. Solar energy is increasingly seen as the most cost-effective solution to bring electricity to these underserved communities.
Ashish Khanna, Director General of ISA, highlighted the transformative potential for farmers, whose use of solar-powered irrigation pumps could dramatically cut costs. “Solar pumps consume only a quarter of the energy compared to diesel pumps,” Khanna noted, emphasizing how this shift could significantly boost agricultural productivity and household incomes.
At the core of this ambitious vision is the planned construction of Ethiopia’s first 400-megawatt solar energy park. Modeled on successful solar park projects in India—which has driven 90% of the country’s solar power development—Ethiopia aims to attract robust private sector investment. Khanna explained that by enabling the private sector to focus on solar power generation, the government can concentrate its efforts on reforming electricity distribution, a crucial bottleneck for energy expansion.
However, ISA experts caution that the success of this solar revolution depends on effective policy reforms. Current regulatory challenges, including inconsistent policies, lack of standards, high taxes, and inflexible financing requirements, hamper private investment growth. Particularly problematic are traditional security requirements which act as barriers for new investors. To overcome these hurdles, ISA recommends adopting financial models centered on cash flow and data-driven approaches to ease investor concerns.
To facilitate on-the-ground coordination and navigate these challenges, the Ethiopian government and ISA will establish National Focal Point Support Units (NSUs). These compact teams of three to four local experts will act as daily operational hubs overseeing all solar projects—from large solar parks to home solar systems and agricultural applications. The NSUs will bridge communication between government agencies and private investors, smoothing policy implementation and resolving emerging financial or regulatory issues.
The partnership also includes pioneering pilot programs aimed at expanding rural electrification sustainably. A 700-kilowatt small power distribution initiative will electrify rural villages, powering not only homes but also small-scale economic activities such as rice milling and bread processing. Critical health services will also benefit, gaining reliable power to store vaccines and perform minor medical procedures. Should this pilot succeed, it is slated for replication in thousands of communities nationwide.
Further bolstering Ethiopia’s solar capacity, the partnership plans to expand and upgrade the Solar Technology Application Resource Center (STAR-C) at Addis Ababa University. The center will evolve into a state-of-the-art testing and measurement laboratory, ensuring solar equipment quality, while providing training to create jobs in installation and maintenance. Additionally, STAR-C aims to foster entrepreneurship, supporting start-ups and generating innovative business ideas among Ethiopia’s youth.
