NEWS

The African Development Bank Group has approved a $2 million reimbursable grant through the Sustainable Energy Fund for Africa (SEFA) to support the development of two renewable energy mini-grid projects in Ethiopia. The funding will help advance the Lelicho and Murche mini-grid sub-projects under the Distributed Renewable Energy and Agriculture Modalities (DREAM) programme, which aims to improve electricity access while boosting agricultural productivity in rural communities.

The approval was granted by the Bank’s Board of Directors on July 17 and forms part of the broader $8 million programmatic financing package for the DREAM programme that was approved in May 2024. The grant will support projects being developed by RVE.SOL ETH Energy Generation Solutions PLC and will cover up to 50% of the capital expenditure required for the two mini-grid installations.

The DREAM programme was created through collaboration between the Government of Ethiopia, the African Development Bank, the Global Energy Alliance for People and Planet (GEAPP), and several other development partners. It is designed to address the interconnected challenges of water, energy, and food security by promoting renewable energy solutions that also support agricultural development.

A key feature of the programme is its innovative “ABC” model, which stands for Anchor loads, Business demand, and Community connections. This approach combines renewable energy mini-grids with productive agricultural activities, creating stable electricity demand while improving the financial viability of rural energy projects. By linking energy access with irrigation and farming, the programme seeks to attract greater private-sector investment into underserved rural areas.