ETHIOPIA

Mini-Grids to Power Agricultural Communities

Over the last decade, Ethiopia has been one of the fastest growing countries on Earth, increasing its population by nearly 30%.59 Agriculture is the heart of Ethiopia’s economy, accounting for 32% of GDP and 70% of the labor market.60 Higher productivity is needed to feed the growing population. New industry is needed to provide them with opportunities.

ETHIOPIA

Mini-Grids to Power Agricultural Communities

Over the last decade, Ethiopia has been one of the fastest growing countries on Earth, increasing its population by nearly 30%.59 Agriculture is the heart of Ethiopia’s economy, accounting for 32% of GDP and 70% of the labor market.60 Higher productivity is needed to feed the growing population. New industry is needed to provide them with opportunities.

Three out of four Ethiopian farmers are smallholders who only earn about $2 per day.61 More than 95% of Ethiopian farmland relies on rainfall to sustain crops.62

Irrigation systems can ensure that thirsty crops get enough water, but they require energy. Diesel- or gasoline- powered generators are expensive, require fuel and maintenance, and are also noisy and polluting. Over the course of a year, a single diesel-powered irrigation pump requires 873 liters of fuel at a cost of $530, and generates over 2.3 tons of CO2 emissions.63

Fortunately, Ethiopia has a lot of sunshine. Under the GEAPP umbrella, the African Development Bank, European Investment Bank, and other partners including the government of Ethiopia, are supporting the deployment of solar mini-grids that will provide reliable, affordable, year-round electricity to power irrigation for farmers, local communities, and more. When complete, the Distributed Renewable Energy-Agriculture Modalities (DREAM) project will include the largest mini-grid powered irrigation system on the continent.

DREAM communities won’t just get cheaper, cleaner, more reliable power for irrigation…
Electrification enables the local economy to create enormous value and accelerates rural development. The Alliance’s upstream partners will work with local farmers and communities to design and implement a variety of mini-grid-powered solutions that match local needs and practices.

The DREAM project will specifically include support for productive uses of energy that help ensure that these mini-grids have sufficient demand for their power to justify private investment. Meanwhile, these same productive uses of energy will promote rural economies and improve the lives of local residents.

Investment in electric-powered equipment will result in higher productivity, less wasted time, and enhanced quality of life. For example, cold storage means agricultural products have more time to get to market. Other machines will add value by washing, milling, roasting, grinding, drying, and packaging different food products. All this industry builds on higher local crop yields, produced with electric irrigation.

Irrigation systems can ensure that thirsty crops get enough water, but they require energy. Diesel- or gasoline- powered generators are expensive, require fuel and maintenance, and are also noisy and polluting. Over the course of a year, a single diesel-powered irrigation pump requires 873 liters of fuel at a cost of $530, and generates over 2.3 tons of CO2 emissions.63

Fortunately, Ethiopia has a lot of sunshine. Under the GEAPP umbrella, the African Development Bank, European Investment Bank, and other partners including the government of Ethiopia, are supporting the deployment of solar mini-grids that will provide reliable, affordable, year-round electricity to power irrigation for farmers, local communities, and more. When complete, the Distributed Renewable Energy-Agriculture Modalities (DREAM) project will include the largest mini-grid powered irrigation system on the continent.

DREAM communities won’t just get cheaper, cleaner, more reliable power for irrigation…
Electrification enables the local economy to create enormous value and accelerates rural development. The Alliance’s upstream partners will work with local farmers and communities to design and implement a variety of mini-grid-powered solutions that match local needs and practices.

The DREAM project will specifically include support for productive uses of energy that help ensure that these mini-grids have sufficient demand for their power to justify private investment. Meanwhile, these same productive uses of energy will promote rural economies and improve the lives of local residents.

Investment in electric-powered equipment will result in higher productivity, less wasted time, and enhanced quality of life. For example, cold storage means agricultural products have more time to get to market. Other machines will add value by washing, milling, roasting, grinding, drying, and packaging different food products. All this industry builds on higher local crop yields, produced with electric irrigation.

Enough electricity will be produced to also power telecommunications systems, medical facilities, schools, and homes. Farmers’ yields, incomes, and food security will rise. Over the life of the program, 200 mini-grids will provide new or improved access to electricity to over 290,000 people.64 And it will create or improve more than 60,000 jobs.65 While displacing up to 200,000 tons of greenhouse gas emissions by 2030.66

290K+
with new or improved access
60K+
new and improved jobs
200K+
tCO 2
End of life: 500000 tCO 2

Footnotes

  1. Source: IEA, “Global energy crisis shows urgency of accelerating investment in cheaper and cleaner energy in Africa”; available at: https://w/ww.iea.org/news/global-energy-crisis-shows-urgency-of-accelerating-investment-in-cheaper-and-cleaner-energy-in-africa
  2. Source: Tracking SDG7 – SDG 7.1.1 Electrification Dataset; available at: https://trackingsdg7.esmap.org/downloads
  3. Source: Tracking SDG7 – SDG 7.1.1 Electrification Dataset; available at: https://trackingsdg7.esmap.org/downloads
  4. Source: IEA, SDG7: Data and Projections; available at: https://www.iea.org/reports/sdg7-data-and-projections
  5. Source: Tracking SDG7 – SDG 7.1.1 Electrification Dataset; available at: https://trackingsdg7.esmap.org/downloads
  6. Source: SEforAll “Lasting Impact: Sustainable Off-Grid Solar Delivery Models to Power Health and Education” (2019), available at: https://www.seforall.org/publications/lasting-impact-sustainable-off-grid-solar-delivery-models
  7. Source: 60_decibels: Uses and Impacts of Solar Water Pumps; available at: https://storage.googleapis.com/e4a-website-assets/Use-and-Impacts-of-SWPs-July-2021-v2.pdf
  8. Source: Authors’ calculations assuming average-sized smartphone battery (4,000 mAh, 3.8V; 15 Wh) and average electricity rates in the US and Europe ($0.15- $0.30 per kWh) vs. typical charging service cost in developing contexts.
  9. Source: IFC, The Dirty Footprint of the Broken Grid, 2019; Available at: https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/financial+institutions/resources/dirty-footprint-of-broken-grid
  10. Source: IFC, The Dirty Footprint of the Broken Grid, 2019; Available at: https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/financial+institutions/resources/dirty-footprint-of-broken-grid
  11. Source: World Bank, Underutilized Potential: The Business Costs of Unreliable Infrastructure in Developing Countries, 2019; Available at: https://elibrary.worldbank.org/doi/10.1596/1813-9450-8899
  12. Source: World Bank Enterprise Surveys; available at: https://www.enterprisesurveys.org/en/enterprisesurveys
  13. Source: Authors’ calculations, leveraging Tracking SDG7 – SDG 7.1.1 Electrification Dataset, IEA per capita electricity consumption data
  14. Source: Energy for Growth Hub, The Modern Energy Minimum; Available at: https://www.energyforgrowth.org/wp-content/uploads/sites/4/2019/01/FULL-Modern-Energy-Minimum-final-Jan2021.pdf
  15. Source: Authors’ calculations, leveraging US EIA data for US historicals, IEA per capita electricity consumption data, and World Bank country designations.
  16. Source: IEA Data Browser, Available at: https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser
  17. Source: Authors’ calculations based on regression analysis of per capita GDP and electricity consumption data vs. HDI score
  18. Source: Authors’ calculations, leveraging IEA per capita electricity consumption data, IEA residential share of electricity consumption data, and UN DESA World Population Prospects 2022 medium variant projections (all publicly available).
  19. Source: IEA Data Browser, Available at: https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser
  20. Authors’ calculations based on IEA, Tracking Transport 2021, available at: https://www.iea.org/reports/transport
  21. Solar PV indirect emissions occur during the manufacturing, distribution, installation, and disposal of systems component
  22. Source: IRENA, Power Generation Costs, 2021; Available at: https://www.irena.org/publications/2022/Jul/Renewable-Power-Generation-Costs-in-2021
  23. Source: Bloomberg New Energy Finance, “Battery Pack Prices Fall to an Average of $132/kWh, But Rising Commodity Prices Start to Bite”, available at: https://about.bnef.com/blog/battery-pack-prices-fall-to-an-average-of-132-kwh-but-rising-commodity-prices-start-to-bite/
  24. Source: IEA, Annual energy storage additions by country, 2015-2020; available at: https://www.iea.org/data-and-statistics/charts/annual-energy-storage-additions-by-country-2015-2020
  25. Source: Author’s calculations leveraging NREL’s U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks: Q1 2021
  26. Source: Rockefeller Foundation, Electrifying Economies; Available at: https://www.rockefellerfoundation.org/rf-microsites/electrifying-economies/
  27. Source: SEIA, “Solar Industry Research Data”; available at: https://www.seia.org/solar-industry-research-data
  28. Source: Ember Data Explorer; available at: https://ember-climate.org/data/data-explorer/
  29. Source: Author modeling leveraging data from CAIT and assuming that OECD countries reach net zero by 2050, emerging economies by 2060, and energy-poor countries by 2070, with emissions growth reversed in the latter by 2040
  30. Source: Author modeling leveraging data from CAIT and assuming that emissions grow at a CAGR of 2.8 percent per year through 2050 and 1.4 percent in the following decade, only beginning to decrease starting in 2060.
  31. Source: Author’s calculations based on OPEC crude oil reserves of 267 billion barrels and and 0.3714 tCO2/barrel from ‘Carbon Majors: Accounting for Carbon and Methane Emissions 1854-2010 – Methods & Results Report’

 

GEAPP Program and Partner Project Highlights

  1. Source: Benchmarking Distribution Utilities in India, October 2020, SPI & Niti Aayog; Available at: https://smartpowerindia.org/wp-content/uploads/sites/4/2021/07/WEB_SPI_Electrification_16.pdf
  2. Source: Rooftop Solar final render; Available at: https://www.youtube.com/watch?v=4wwvbXpuWgs
  3. Source: Rooftop Solar final render; Available at: https://www.youtube.com/watch?v=4wwvbXpuWgs
  4. Source: SPI Customer Report; Available at: https://smartpowerindia.org/smart-power-india-launches-its-report-on-rural-electrification-in-india/
  5. Source: Health Effects of Diesel Exhaust; Available at: https://www.cancer.org/healthy/cancer-causes/chemicals/diesel-exhaust-and-cancer.html ; https://erj.ersjournals.com/content/17/4/733 ; https://oehha.ca.gov/air/health-effects-diesel-exhaust
  6. Source: SPI Deployment estimates
  7. Source: ESMAP, Nigeria Tracking SDG 7, available at: https://trackingsdg7.esmap.org/country/nigeria
  8. Authors’ calculation based on IEA 2019 data
  9. Source: FAO,  Nigeria at a Glance, available at: https://www.fao.org/nigeria/fao-in-nigeria/nigeria-at-a-glance/en/
  10. Source: National Bureau of Statistics, available at: https://www.nigerianstat.gov.ng/
  11. Source: IFC, The Dirty Footprint of the Broken Grid, 2019; Available at: https://www.ifc.org/wps/wcm/connect/2cd3d83d-4f00-4d42-9bdc-4afdc2f5dbc7/20190919-Full-Report-The-Dirty-Footprint-of-the-Broken-Grid.pdf?MOD=AJPERES&CVID=mR9UpXC
  12. Source: IFC, The Dirty Footprint of the Broken Grid, 2019; Available at: https://www.ifc.org/wps/wcm/connect/2cd3d83d-4f00-4d42-9bdc-4afdc2f5dbc7/20190919-Full-Report-The-Dirty-Footprint-of-the-Broken-Grid.pdf?MOD=AJPERES&CVID=mR9UpXC
  13. Source: Nigeria Energy Transition Plan, available at: https://www.seforall.org/events/launch-of-nigerias-energy-transition-plan
  14. Source: International Energy Agency Energy Statistics Data Browser; Available at: https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser
  15. Source: International Energy Agency – South Africa; Available at: https://www.iea.org/countries/south-africa
  16. Source: South Africa Department of Energy Energy Balances 2018 (pg. 14); Available at: http://www.energy.gov.za/files/media/explained/2021-South-African-Energy-Sector-Report.pdf
  17. Source: GDP by Country; Available at: https://www.worldometers.info/gdp/gdp-by-country/
  18. Source: UNDP Climate Promise – South Africa; Available at: https://climatepromise.undp.org/what-we-do/where-we-work/south-africa
  19. Source: World Bank data; available at: https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=MM. However, SPM estimates this number to be closer to 55%.
  20. Source: https://www.unfpa.org/data/world-population/MM
  21. Source: SPM: Energising Agriculture in Myanmar; available at: https://downloads.ctfassets.net/nvxmg7jt07o2/aw1dQBBaMLxivJ7jRLu4Z/716b0732a3e83bfa6c3bbe50a573f565/Final_SPM-agriculturalvaluechains-final_1.pdf
  22. Source: Fulcrum, “Myanmar’s Post-coup Electricity Woes: Stalled Power Plans, Shattered Public Trust”; available at: https://fulcrum.sg/myanmars-post-coup-electricity-woes-stalled-power-plans-shattered-public-trust/
  23. [1]Source: World Bank, Myanmar Rice and Pulses: Farm Production Economics and Value Chain Dynamics (2019); available at: https://documents1.worldbank.org/curated/en/623701579900727742/pdf/Myanmar-Rice-and-Pulses-Farm-Production-Economics-and-Value-Chain-Dynamics.pdf
  24. Source: Myint, T and Myo Thu, K – National Export Strategy (2019) Rubber Sector Strategy, 2015-2019; retrieved from https://ap.fftc.org.tw/article/2606
  25. Source: Myint, T and Myo Thu, K – National Export Strategy (2019) Rubber Sector Strategy, 2015-2019; retrieved from https://ap.fftc.org.tw/article/2606
  26. Source: Myint, T and Myo Thu, K – National Export Strategy (2019) Rubber Sector Strategy, 2015-2019; retrieved from https://ap.fftc.org.tw/article/2606
  27. Source: USAID: Rapid Market Assessment of Aquaculture Sector in Myanmar (2021); available from: https://pdf.usaid.gov/pdf_docs/PA00XCRW.pdf
  28. Source: World Data Population Comparison; Available at: https://www.worlddata.info/populationgrowth.php
  29. Source: GEAPP DREAM Initiative; Available at: https://www.energyalliance.org/news-insights/dream-initiative/
  30. Source: FAO Smallholder Farmer Data Portrait; Available at: https://www.fao.org/family-farming/detail/en/c/385074/
  31. Source: GIZ Solar Irrigation Market Analysis in Ethiopia, IWMI/FAO Suitability Framework for Solar Irrigation ; Available at: http://www.practica.org/wp-content/uploads/sites/4/2021/04/Solar-irrigation-market-Analysis-in-Ethiopia_GIZ-NIRAS-IP-Consult-PRACTICA.pdf
  32. Source: Catalyst calculations leveraging information from the Ethiopian Agricultural Transformation Agency Minigrid Viability Report.
  33. Source: Catalyst estimations leveraging World Bank Multi-tier Framework
  34. Source: Catalyst estimations leveraging GEAPP “Transforming a Billion Lives” Report; Available at: https://www.energyalliance.org/reports/
  35. Source: Catalyst estimations leveraging: CDM AMS-I.L. Electrification of rural communities using renewable energy — Version 3.0; Available at: https://cdm.unfccc.int/methodologies/DB/CCZKY3FSL1T28BNEGDRSCKS0CY0WVA, CDM AMS-I.F.Renewable electricity generation for captive use and mini-grid — Version 4.0; Available at: https://cdm.unfccc.int/methodologies/DB/VLTLVBDOD19GFSTDHAR0CRLUZ6YMGU, CDM AMS-I.B. Mechanical energy for the user with or without electrical energy — Version 12.0; Available at:https://cdm.unfccc.int/methodologies/DB/M204DLP0XMSWSZ9H4SIZ6W86M8RHCM and SE4ALL Emissions Tool; Available at: https://www.seforall.org/mini-grids-emissions-tool
  36. Source: NREL Island Energy Snapshot; Available at: https://www.nrel.gov/docs/fy15osti/62708.pdf
  37. Source: Energy Information Administration – Hawaii; Available at: https://www.eia.gov/state/?sid=HI
  38. [1]Source:Energy Information Administration – Electric Power Monthly; Available at: https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
  39. Source: The Socio-Economic Impacts of the Puerto Rico Electric Power Authority (PREPA) Restructuring Support Agreement (RSA) on the Population of Puerto Rico; Available at: https://ieefa.org/wp-content/uploads/sites/4/2019/12/PREPA-RSA-Cordero-Guzman-UTIER-REPORT-9-10-19-FIN-ENGLISH.pdf
  40. Source: The Socio-Economic Impacts of the Puerto Rico Electric Power Authority (PREPA) Restructuring Support Agreement (RSA) on the Population of Puerto Rico; Available at: https://ieefa.org/wp-content/uploads/sites/4/2019/12/PREPA-RSA-Cordero-Guzman-UTIER-REPORT-9-10-19-FIN-ENGLISH.pdf
  41. Source: Tracking SDG7 – SDG 7.1.1 Electrification Dataset; available at:https://trackingsdg7.esmap.org/downloads
  42. Source: The World Bank, “Nigeria – Food SmartCountry Diagnostic,” 2020.; Available at: https://openknowledge.worldbank.org/handle/10986/34522
  43. Source: PWC. Boosting rice production through increased mechanisation, (2018); available from: https://www.pwc.com/ng/en/publications/boosting-rice-production-through-increased-mechanisation.html
  44. Food and Agriculture Organization of the United Nations, World Food and Agriculture – Statistical Yearbook 2020. Rome, 2020. doi: 10.4060/cb1329en. ; Available at: https://www.fao.org/3/cb1329en/CB1329EN.pdf
  45. Source: Boosting rice production through increased mechanisation, (2018); available from: https://www.pwc.com/ng/en/publications/boosting-rice-production-through-increased-mechanisation.html
  46. Source: Tracking SDG7 – SDG 7.1.1 Electrification Dataset; available at:https://trackingsdg7.esmap.org/downloads
  47. Source: Prospects for Energy Efficiency in Sierra Leone’s Power Sector; Available at: https://www.energyeconomicgrowth.org/sites/default/files/2022-02/Lucas%20Davis%20working%20paper.pdf
  48. Source: Estimations based on GEAPP Jobs report multipliers and International Labour Organization Hydropower Jobs ; Available at: https://www.ilo.org/wcmsp5/groups/public/—ed_emp/documents/publication/wcms_562269.pdf
  49. Source: Catalyst calculations based on World Bank Multi-tier Framework
  50. Source: CDM AMS-I.L. Electrification of rural communities using renewable energy — Version 3.0; Available at: https://cdm.unfccc.int/methodologies/DB/CCZKY3FSL1T28BNEGDRSCKS0CY0WVA
  51. Source: CDM AMS-I.D. Grid connected renewable electricity generation — Version 18.0; Available at: https://cdm.unfccc.int/methodologies/DB/W3TINZ7KKWCK7L8WTXFQQOFQQH4SBK
  52. Source: Catalyst calculations based on Tracking SDG 7.
  53. Source: IADB Energia Hub; Available at: https://hubenergia.org/index.php/en/indicators/access-electricity-service
  54. Source: IADB Energia Hub; Available at: https://hubenergia.org/index.php/en/indicators/access-electricity-service
  55. Source: Tracking SDG 7 Report; Available at: https://trackingsdg7.esmap.org/country/malawi
  56. Source: IRENA Statistical Profiles – Malawi; Available at: https://www.irena.org/IRENADocuments/Statistical_Profiles/Africa/Malawi_Africa_RE_SP.pdf
  57. Source: Catalyst modeling based on expected improvements to power supply reliability for grid-tied customers served by the new BESS and VRE systems.
  58. Source: Catalyst modeling based on storage industry multipliers for direct BESS construction and general economy sector splits for Malawi applied to estimated employment multipliers from GEAPP’s 2021 Jobs Report.
  59. Source: Catalyst modeling based on displacement of stop-gap and backup power sources for households and businesses
  60. IEA Energy Statistics – Indonesia; Available at: https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser
MYANMAR
Solar to Power up Myanmar’s Agricultural Economy
PUERTO RICO
Renewable Energy to Ensure Power at Critical Facilities