Ethiopia’s Ministry of Water and Energy and the International Solar Alliance (ISA) have signed an agreement to generate 400 megawatts of electricity from solar energy, aiming to close the gap between the country’s high solar potential and its limited current production.

Although Ethiopia has significant solar resources, current generation has remained below 10 megawatts. The new project will replace diesel-powered water pumps and other agricultural equipment with solar-powered alternatives, providing a more reliable and cost-effective energy source for rural communities.

Eng. Sultan Wali Ahmed (PhD), State Minister for Water and Energy noted that Ethiopia’s previous solar generation capacity was limited to 7.9 megawatts, largely due to restrictions on private sector involvement. The new framework allows private investment to participate alongside government efforts.

The International Solar Alliance, established over a decade ago, counts 124 member countries, including Ethiopia, and supports developing nations in transitioning from conventional fuels to renewable energy.

Construction is expected to begin within three to six months at designated sites across the country.

In addition to agriculture, the initiative includes solar installations for homes and public buildings. In central Ethiopia’s Tenbare district of Waro, a 700-kilowatt solar project will be developed under the agreement, marking the first step toward large-scale solar adoption in the country.