Successful bid price of hybrid solar inverter project in Ethiopia 2025

How much does a solar PV system cost in Ethiopia?

These cost structures align with Ethiopia's export tariffs to Kenya, which are priced at USD 6.5 cents per kWh. Currently, there are practically no roof-top solar PV systems in Ethiopia. With the planned increase in the tariff, many households and businesses may find it attractive with small individual solar PV sys-tems.

How much electricity does Ethiopia produce in 2040?

The share of so-lar in electricity generation reaches 17% in 2040. Ethiopia’s net electricity exports until 2036 will pri-marily be driven by large-scale hydropower invest-ments. However, net import of electricity is ex-pected from 2038, as the pace of demand growth in Ethiopia exceeds that of supply, in the least-cost development. See Figure 6.4.

How much solar power does Ethiopia need?

Figure 2.2: Illustration of the solar potential in Ethiopia and the required land area: A 108 km2 solar PV park (the small yel-low square placed in Somali region) would generate 18 TWh/year – the same as the current demand. In practice the area should be spread over the country. A similar generation from wind power would require 500 km2 area.

How much does electricity cost in Ethiopia?

Such a mechanism is in line with the tariff guidelines and can be linked to or combined with the four-year tariff adjustment plan. Hydropower costs range from 3-5 cents per kWh, and wind and solar costs are between 5-7 cents per kWh. These cost structures align with Ethiopia's export tariffs to Kenya, which are priced at USD 6.5 cents per kWh.

Will EEP buy solar power projects in 2025?

Future investments in hydro, wind, solar, and geothermal projects is planned to have private ownership, with EEP acting as the primary electricity purchaser. Solar PV IPP auctions were announced in February 2025, with a total capacity of 225 MW in Gad and Weransso. The deadline for prequalification is April 2025.

Should large-scale hydropower be deployed at multiple sites in Ethiopia?

The early deployment of large-scale hydropower at multiple sites in Ethiopia should be prioritised. In-vestments in hydropower serve as the key driver of electricity exports in the medium term, thereby providing a source of foreign currency.