Ethiopia - Sustainable Energy Fund for Africa to Extend $2 Million for Pioneering Energy-Agriculture Mini-Grid Project

The African Development Bank Group's Board of Directors has approved a $2 million reimbursable grant from the Sustainable Energy Fund for Africa (SEFA) to support the development of two renewable power mini-grids in Ethiopia under the Distributed Renewable Energy and Agriculture Modalities (DREAM) programme.

Approved on 17 July, this financing forms part of the $8 million programmatic financing envelope for DREAM approved in May 2024. It will support the Lelicho and Murche mini-grid sub-projects, developed by RVE.SOL ETH Energy Generation Solutions PLC, and will contribute up to 50% of mini-grid project capital expenditure. The programme was developed in collaboration with the Government of Ethiopia, the Global Energy Alliance for People and Planet (GEAPP) and other stakeholders.

DREAM is a first-of-its-kind programme that addresses the water-energy-food nexus by unlocking a commercially viable rural electrification model that combines renewable energy mini-grids with productive-use agricultural demand. Through its innovative ABC model--Anchor loads, Business demand and Community connections--the programme improves project economics, strengthens revenue certainty, and creates a scalable pathway for private-sector investment in underserved rural markets.

The Sustainable Energy Fund for Africa is a multi-donor special fund providing catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. Its overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with Mission 300 and Sustainable Development Goal 7.

Read the original article on African Development Bank (AfDB).