- Through the AfDB SEFA funding, the DREAM project will deploy solar minigrids to power agriculture and local communities in Ethiopia.
The African Development Bank Group (AfDB) has awarded the Ethiopia Distributed Renewable Energy and Agriculture Modalities (DREAM) program with $8 million from the Sustainable Energy Fund for Africa (SEFA).
The funds, which AfDB will provide through concessional loans, grants, and risk mitigation, will finance up to 50 per cent of the capital expenditures associated with DREAM’s solar minigrid pilot program.
During the pilot, DREAM will deploy solar minigrids to power agricultural irrigation systems and local communities in Ethiopia. The program aims to deliver the largest minigrid-powered irrigation system in Africa.
Minigrids are deployed majorly in remote areas without access to a central grid. Minigrid systems use software to control distributed energy resources like solar panels and battery storage, providing remote communities with reliable, clean and affordable power.
Ethiopia’s Minister of Water and Energy, Habtamu Itefa Geleta, said, “Water, energy and food are critical for our sustainable well-being. The Ethiopian government is approaching the twin challenges of agricultural productivity and energy access with an integrated approach.
“We are glad to partner with the African Development Bank, through SEFA, and other project stakeholders on this innovative DREAM pilot.”
The DREAM Programme
The DREAM programme is a collaboration between several ministries within the Ethiopian government, including the Ministry of Water and Energy and the Global Energy Alliance for People and Planet (GEAPP).
GEAPP, a collective that works to expand vulnerable communities’ access to green energy that is affordable and reliable, is co-financing the DREAM pilot.
DREAM is one of the means which GEAPP is using to address two of the defining challenges of our time – ending energy poverty and tackling the climate crisis through a just transition to renewable energy.
According to Joseph Ng’ang’a, GEAPP’s interim CEO, DREAM communities won’t just get electrified but will also get reliable power for irrigation and clean drinking water. The program will also enable the local economy to create enormous value and accelerate rural development for close to 300,000 people.
The DREAM project provides an innovative approach to addressing the water-energy-food nexus in Ethiopia. In addition, organisers believe the DREAM pilot will serve as a model for future minigrid installations in Ethiopia and across the continent.