Project

Promoting Sustainable Rural Energy Technologies (RETs) for Household and Productive Uses in Ethiopia

Lead country

Ethiopia

Participating countries

Ethiopia

Project status

Under implementation

Implementing period

From May 16, 2016 to May 16, 2021

SDGs addressed by this project

SDG targets

  1. 7.2 Increase share of global renewable energy
  2. 9.3 Increase small-scale industrial enterprise access to financial services

Project ID: 5200

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Technical team

  • Energy Programme

Technical area(s)

  • Energy access
  • Renewable Energy

Sub-area(s)

  • Electricity access
  • Clean cooking
  • Type: Off-grid, standalone systems
  • Resource: Solar
  • Resource: Biomass

Landscape(s)

  • Human altered areas

Sub-landscape(s)

  • Rural areas

Transformed sector(s)

  • Agriculture
  • Retail

UNDP role(s)

  • Capacity development / Technical assistance
  • Innovative approaches
  • Institutional mechanism and system building

Strategy

  • Law regulation
  • Enabling
  • Finance economy

Sub-strategy

  • Laws/ Policy/ Plan formulation
  • Standards/ Labeling/ Guideline
  • Awareness raising
  • Community engagement
  • Public campaign
  • Energy finance
  • New/other financial schemes/mechanism

Social inclusion

  • Local community/CSOs
  • Private sector

Gender equality

  • Awareness raising (on gender)

Gender result effectiveness scale

  • Gender blind

Pathway(s)

  • Sci-tech pathway
  • Systems pathway
  • People pathway

Risk reduction target(s)

  • Improve resilience
  • Hazard control/mitigation

SDG target(s)

  • 7.2 Increase share of global renewable energy
  • 9.3 Increase small-scale industrial enterprise access to financial services

Conventions and protocols

N/A

Private sector(s)

  • Small and medium-sized enterprises
  • Individuals/Entrepreneurs

Hot topic

  • Multi-stakeholder collaboration
  • Poverty reduction

About this project

Description

The project aims to reduce Ethiopia's energy-related CO2 emissions by approximately 2 million tonnes CO2e by promoting renewable energy and low greenhouse gas (GHG)-producing technologies as a substitute for fossil fuels and non-sustainable biomass utilisation in the country, with a focus on rural household appliances for cooking, lighting and heating. The activities proposed in the project are designed to remove barriers that hamper the wide-scale use of off-grid renewable energy technologies in households and productive uses in rural areas of Ethiopia, where extending the grid is simply not feasible in the short-run and where the ability to pay for larger-scale solutions is often limited. The project consists of four components and will be implemented over a period of five years. This UNDP and MoWIE -implemented, GEF-financed project will seek to implement a more private sector-driven and market-based approach towards promoting renewable energy technologies in rural communities in Ethiopia. The four components consist of a combination of de-risking instruments (Component 1) and market-enabling activities (Component 2 and Component 4) that will combine together with a financial support mechanism (Component 3) to help transform the market for off-grid renewable energy technologies in rural communities. Approximately 800,000 additional households (4 million people) will benefit from the project by being enabled to invest in approximately 200,000 small-scale solar PV products (about 2.5 MWp total capacity) and approximately 600,000 improved cook-stoves.

Objectives

To promote and encourage significantly greater use of energy efficient and renewable energy technologies for household and productive uses in rural communities in Ethiopia.

USD $4,191,781

Grant amount

USD $69,045,899

Leveraged amount (co-financing)

1

Source(s) of fund

Sources of fund

 

  • Global Environment Facility – Trust Fund ($4,191,781)

Implementing partner(s)

  • Government of Ethiopia

Project metrics

Outcome 1:

Favourable legal and regulatory environment created for small-scale, off-grid renewable energy investments in rural areas are in place and stakeholders are trained to comply and implement the new standards and regulations.

 Indicators:

Lifetime energy saved.
Status of development and enforcement of RET hardware standards by Government of Ethiopia.
Number of RET enterprises using SFM or applying for business incubation services.
Number, size and length of appearances of promotions in media.
Type, item price and estimated efficiency of technology sold directly at roadshows
Volume of investment mobilised by FSPs participating in the project.
Number of enterprises that launch micro-businesses to sell either small-scale solar technologies or improved cook-stoves (or both)
Outcome 2:

Greater awareness among rural populations about the benefits of renewable energy for household and productive uses.Greater awareness among RET enterprises about the availability of SFM and business support
Outcome 3:

By the end of project, more than 290,000 low-income households and micro-enterprises (1,500,000 beneficiaries) will have sustainable access to clean energy through micro-finance. It is envisaged that CleanStart, in partnership with the UNDP-implemented, GEF-financed project, will create a replicable business model for wider scale-up across other developing countries by adopting an integrated approach to addressing demand and supply-side barriers.
Outcome 4:

At least 120 small-scale enterprises and manufacturers are successfully producing and profitably selling RETs both for household consumption and for productive uses.
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Geospatial information

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Project reports and documentation

 

Project Document (ProDoc)