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Stand Alone Solar (SAS) Market Update: Ethiopia

 

To meet the updated National Electrification Programme (NEP 2.0) target of nine million off-grid connections,1 annual supplies of SAS products will have to rise by an average of 12 per cent from 1.7 million units in 2021 to 2.7 million units in 2025. The estimated supply value (excluding distribution costs) for the solar home system (SHS) component of the off-grid plan is estimated at USD72 million in 2021 rising to USD171 million in 2025.

These targets far exceed current supply. For example, the highest half-year sales was 718,000 units in the second half of 2019.2 A major increase in sales is unlikely to be possible without a commensurate increase in the amount of forex available to private sector SAS companies or allowing foreign companies to participate in off-grid solar distribution services.

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