Ethiopia is a country with one of the fastest growing populations on Earth and the second most populous country in Africa. The majority of Ethiopians make their living from agriculture, which accounts for 32% of the country’s GDP and 70% of the labour market. Increasing amounts of food are needed to feed the expanding population, but just 5% of the land is irrigated and the crop yields of small farms are below regional averages.

Until now, farmers had to use diesel generators to power water pumps to irrigate their crops. But in July 2022, the Ethiopian government reduced fuel subsidies, raising the price of petrol by 30% and diesel by 40%. In the past two years the price of diesel has risen by more than 200%. Three out of four Ethiopian farmers are smallholders who only earn about $2 a day; the use of such generators has quickly become a luxury many cannot afford.

It is not just the agricultural sector which is under stress. Ethiopia is home to 57 million people who live without access to electricity, making it the third largest unserved population in the world, behind only Nigeria and Democratic Republic of Congo. GEAPP’s work through the DREAM – Distributed Renewable Energy – Agriculture Modalities – initiative aims to address both these problems in one go.

DREAM is the first time a private sector-led energy solution has focused on irrigation for smallholder farmers. The hope is it will serve as a blueprint for similar projects, not just in Ethiopia but across sub-Saharan Africa. DREAM will deploy solar mini grids that provide reliable, affordable, year-round electricity to power large-scale irrigation systems, including wells, pumps and distribution networks. The mini grids alsoallow surrounding local communities access to electricity.

The farmers serve as high electricity demand customers, in effect becoming the anchor users that support the commercial sustainability of the mini grids. Other business customers and private households can then benefit from subsidised access to electricity. This is a ground-breaking approach, both for Ethiopia and Africa as a whole. Historically, utility companies did not plan for the energy needs of agricultural equipment – like irrigation systems – when installing distributed renewable energy. That narrative has now changed, thanks to DREAM.