Ethiopia's Solar Energy Sector in Limbo over Possible Close Down

Jun 12 , 2023

Solar housing system manufacturers and assemblers call for attention citing foreign currency shortages, issues with customs clearance and lack of tax incentives are driving them out of the market. The event organized by Ethiopian Solar Energy Development Association (ESEDA) last week at the Capital Hotel, Haile G. Selassie Avenue saw the attendance of over 50 stakeholders in the energy sector. Hawi Tesfaye, a board chairperson of the Association, states restrictions in the solar power provision are barring them from playing a vital role in the national electrification plan 2.0 which sought to reach over nine million households nearly 30pc of the population through off-grid mediums. Over 140 million people still lack access to electricity in the Horn of Africa according to data from the International Energy Agency (IEA). The Agency's 2022 report indicates the necessity of improving the investment environment of the country to leverage access to finances. There are only four solar assemblers and no manufacturers in the country. Abel Endrias, program manager at Precise Consultants International Plc., said that the sector's workforce shortage poses an alarm hindering the country from achieving a renewable energy goal by 2050. He said that the country's solar energy developments need to annually grow by 12pc if the goal is to be met.