Development Bank of Ethiopia Allocates $40.5 Million to Boost Off-grid Solar Energy

ADDIS ABABA – The Development Bank of Ethiopia (DBE) has allocated 40.5 million USD to support the expansion of off-grid solar energy in rural areas, as part of the Access to Distributed Electricity and Lighting in Ethiopia (ADELE) project.

According to Ethiopian News Agency, Project Design and Appraisal Team Manager at DBE, the funds will be used for importing, distributing, and installing off-grid solar systems and productive use equipment in rural and deep rural zones. The initiative aims to enhance off-grid solar penetration and is underpinned by a broader 500 million USD contribution from the World Bank towards the ADELE project, which is set to conclude in 2027.

Desalegn highlighted that approximately 750,000 households, or roughly 3.75 million individuals, will benefit from improved access to solar energy. DBE Vice President Getachew Wakie emphasized the critical role of financial institutions in ensuring the successful execution of the project. He noted that ADELE seeks to broaden access to reliable electricity for households, social institutions, and enterprises across Ethiopia. Gosaye Mengistie, an advisor to the Ministry of Water and Energy, mentioned the government’s commitment to the National Electrification Program (NEP), which aims for universal electricity access. Efforts are currently focused on enhancing reliable power supply to both households and social institutions. The DBE, Ministry of Water and Energy, and Ethiopia Electric Utility are the primary agencies responsible for implementing the ADELE project.