- The World Bank has approved a $500 million loan to the government of Ethiopia.
- The funds enable the government to implement its Access to Distributed Electricity and Lighting in Ethiopia (ADELE) project.
- The ADELE project is a component of Ethiopia’s National Electrification Programme that aims to provide universal electricity to Ethiopians by 2025.
The Board of Directors of the World Bank has approved a $500 million loan to Ethiopia’s government. This financing would be provided via the bank’s subsidiary, the International Development Association (IDA). The funds will enable the Ministry of Water, Irrigation and Power to implement its Access to Distributed Electricity and Lighting in Ethiopia (ADELE) project.
The ADELE project is a component of Ethiopia’s National Electrification Programme (NEP). This project aims to provide universal electricity to Ethiopians by 2025. The project is being implemented by the Ethiopian Electric Utility (EEU).
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The government has adopted a two-pronged approach towards electrification, grid extension and off-grid electrification.In Urban areas where access is high, it intends to extend the electricity grid and improve distribution infrastructure to ensure a reliable power supply in Addis Ababa and 10 other regional capitals. The project aims to improve the frequency and duration of power outages in these cities by an average of 45 per cent and 5 per cent respectively.
In rural communities, Ethiopia will adopt off-grid electrification options. The government intends to to deploy solar/hybrid mini-grids and battery storage. Hybrid solar mini-grids will aid rural economic development; solar home systems will improve household supply, small-scale farmers and small businesses; and other stand-alone solar systems for health and education facilities.
The government will receive US$217 million to install and operate solar hybrid mini-grids. The World Bank will also provide performance based grants (PBGs) to private mini-grid developers (just like in Nigeria) to support Ethipopia reach its 2025 universal electrification targets.