Expected ROI of microgrid storage project in Ethiopia 2030

Can microgrid development help Ethiopia achieve universal electricity access by 2030?

The Southern Nations, Nationalities, and People’s (SNNP) region faces the greatest challenge, with 62.1% of its population lacking electricity. Ethiopia aims to achieve universal electricity access by 2030, and microgrid (MG) development is expected to play a pivotal role in meeting this goal.

Is there a minigrid Cluster project in Ethiopia?

Currently, there is no minigrid cluster project in Ethiopia, but they have plans (Federal Democratic Republic of Ethiopia National Electrification Program.).

Does Ethiopia need a minigrid?

For Ethiopia, the residential demand of electricity level is very low to cover the minigrid costs, it is necessary to encourage commercial and agricultural activities to bridge the viability gap.

Does SNNP support the development of minigrid in Ethiopia?

In our paper, to make the minigrid cluster successful implemented in SNNP and to boost the development of minigrid in Ethiopia, a flexible framework for minigrid tariff is defined in Table 20 to bridge the affordability gap.

How many diesel-based minigrids are there in Ethiopia?

The implementation of minigrid projects is currently underway with support from the World Bank and collaboration with industrial partners. Within this initiative, 36 diesel-based minigrids have been established by the Ethiopian Electric Utility (EEU), with approximately 35% of them boasting a capacity of 100 kW.

How much does a minigrid cost in Africa?

As a rule, minigrid tariff is much higher than the central grid tariff. Typically, central grid retail tariff in Africa ranges from 0.04 to 0.23 EUR/kWh and Ethiopia has the cheapest grid tariff among Africa countries, while minigrid retail tariff in Africa is ranging from 0.1 to 1.2 EUR/kWh according to the technology (Implementing Partners.).