By Abdullahi Lukman
The African Development Bank (AfDB) has approved a $2 million reimbursable grant to support the development of two renewable energy mini-grids in Ethiopia, strengthening efforts to expand clean electricity access and boost agricultural productivity in rural communities.
The funding, provided through the Sustainable Energy Fund for Africa (SEFA), will finance the Lelicho and Murche mini-grid projects under the Distributed Renewable Energy and Agriculture Modalities (DREAM) programme. Approved by the AfDB Board on July 17, the grant will cover up to 50 per cent of the projects’ capital costs.
The mini-grids, to be developed by RVE.SOL ETH Energy Generation Solutions PLC, are part of an $8 million financing package for the DREAM initiative approved in May 2024.
The programme was designed in partnership with the Ethiopian government, the Global Energy Alliance for People and Planet (GEAPP) and other development partners.
According to the AfDB, the DREAM programme integrates renewable energy with irrigation and agricultural activities to improve rural electrification while creating sustainable economic opportunities.
Its Anchor Loads, Business Demand and Community Connections (ABC) model is designed to strengthen project revenues, attract private investment and expand electricity access in underserved communities.
Ethiopia’s Minister of Water and Energy, Habtamu Itefa Geleta, said the initiative reflects the country’s commitment to linking water, energy and food security through renewable energy solutions that support irrigation and agricultural development.
Daniel Schroth, the African Development Bank’s Director for Renewable Energy and Energy Efficiency, described the programme as an innovative model capable of attracting private-sector investment while promoting climate resilience, job creation and inclusive economic growth.
Carol Koech, Vice President for Africa at the Global Energy Alliance for People and Planet, said combining renewable energy with irrigation, market access and financial support would improve livelihoods and create a model that could be replicated across Africa.
SEFA, a multi-donor special fund managed by the African Development Bank, provides concessional financing and technical support to accelerate private investment in renewable energy and energy efficiency projects across the continent. The fund aims to expand access to affordable and sustainable energy in line with Sustainable Development Goal 7 and Africa’s Mission 300 initiative.
