Country:Ethiopia
Year:2003
Policy status:In Force
Jurisdiction:National
Date Effective:2003
Policy Type:Policy Support>Institutional creation, Policy Support, Economic Instruments>Fiscal/financial incentives>Loans, Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Renewable Energy Policy Targets:Multiple RE Sources, Multiple RE Sources, Power
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:Ministry of Water and Energy
URL:http://faolex.fao.org/docs/pdf/eth95550.pdf
Renewable Energy Description:

The Rural Electrification Fund has the following objectives:

  • To provide loan and technical services for Rural Electrification Projects carried out by private operators, cooperatives and local communities and more specifically for those projects operating on renewable energy sources;
  • To encourage the utilization of electricity for production and social welfare purposes in rural areas.

In order to achieve its objectives, the Fund provides:

  • Concessional loans to diesel (85% loan with interest of 7.5%) and renewable energy projects (95% loan with zero interest). 
  • Capital subsidies of 20-30% on the investment costs to renewable energy project developers on a reimbursement basis.

Last modified: Fri, 17 Feb 2017 15:43:36 CET