The Government of Ethiopia has set a goal of the year 2030 to transform its energy sector with 35,000 solar or wind water supply schemes as part of its nationally determined contribution to the United Nations Framework Convention on Climate Change. This work has begun with a five-year, $50 million Green Climate Fund grant, which will provide funds to purchase and donate new wells and small-scale solar irrigation systems. However, relying on grant funds will make it difficult to reach the scale envisioned by the Government. In collaboration with the Climate Policy Lab (CPL) at Tufts University, Winrock has completed a market study and financial analysis for a commercial or blended-finance approach to replacing diesel pumps with solar. The study shows that commercial models for deployment of solar water pumps may be feasible in two sectors: replacement of existing diesel-powered community water supply systems, and acceleration of the market for small-scale solar pumps for irrigation. Winrock and Winrock and CPL seek funding and implementation partners to undertake a pilot project to demonstrate this revenue model.
Launching a Commercial Market to Replace Diesel Water Pumps with Solar in Ethiopia