ACE TAF SAS Bulletin, Issue 7

10 September 2021

SAS BULLETIN - Issue 7

News Flash: Ethiopia renews its Energy Africa Compact commitments

This week on 7^th September 2021, Ethiopia renewed its commitments under the Energy Africa Compact which was initially signed in 2017. The Refreshed Compact was officially launched by Ato Gossaye Mengistu, Adviser to the State Minister for Energy and Ato Yihyis, Director for Energy Policy, Strategy and Information in collaboration with ACE TAF and the Foreign Commonwealth and Development Office in Ethiopia. This is a major milestone for the off-grid sector that is increasingly gaining government support.

The launch of the Refreshed Compact comes barely three weeks after H.E. Dr. Frehiwot Woldehanna, the State Minister for the Ministry of Water, Irrigation and Energy announced that solar components, most agriculture productive use appliances, and selected solar-powered healthcare equipment will get duty exemptions starting September 2021.

During the launch, Mr Ato Yihyis announced that the implementation of the Refreshed Compact will be under his directorate, including the tracking and monitoring of the initiatives by government and development partners. The Compact seeks to accelerate expansion of the household solar market in Ethiopia and contribute to universal energy access by 2030. This will be achieved by aligning supportive policies with coordinated development partner support to improve market conditions and increase off-grid investment. The Refreshed Compact ushers a new era for off-grid energy access in Ethiopia.

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Energy for agricultural processing to create 190,000 jobs in Ethiopia

For many years micro, small and medium enterprises in Ethiopia have relied on inefficient and costly fossil fuel energy that has hampered their growth. According to a recent study by the Jobs Creation Commission, ACE TAF and the Ethiopia Energy Market Accelerator, uptake of solar energy for agricultural processing presents an opportunity for these enterprises to create 190,000 jobs along the three high value chains of horticulture, wheat and dairy. Read more

Zambia launches a strategy for off-grid solar publicity and information dissemination

In Zambia, consumer awareness of off-grid solar (OGS) remains low and those that know about solar perceive it as an inferior source of electricity compared to grid connection. In addition, low-quality solar products available in the market have eroded consumer confidence as most of them break down within a few months of purchase. To address these and other gaps, the Zambia’s Rural Electrification Authority (REA) with the support of ACE TAF developed an OGS Publicity and Information Dissemination Strategy that was launched on 30^th July 2021. Read more

Kenya the trailblazer: responsible taxation and universal access to energy

The journey of Kenya’s success with off-grid solar can be traced to 2004 when the East Africa Community identified energy as a key enabler for development and provided tax exemptions for renewable energy technologies, including solar. Thereafter, the country was one of the first in Africa to set the universal access target for 2020, then later 2022. Kenya was also one of the pioneers in developing a Renewable Energy Rural Electrification Plan with specific milestones for grid, mini-grid and stand-alone solar connections. Read more | Listen to the podcast

Addressing importation bottlenecks to improve access to solar in Ethiopia

In 2010, the Government of Ethiopia exempted solar products from tax. Since then, several revisions have been made to include new technologies and appliances as solar technology evolves. However, the lack of clarity on the scope of the exemptions led to misinterpretation and inconsistent implementation. This was compounded by the lack of clarity on the importation process for SAS, the documentation required, and classification and application of the harmonized system codes. Eventually, these challenges increase the cost of importing stand-alone solar (SAS) products in the country, which is passed on to the consumer. The process also leads to delays that affect access to reliable solar products. Read more

PayGo PERFORM KPIs

The PAYGo Performance, Reporting and measurement (PERFORM) framework offers the PAYGo solar industry a standardized and transparent set of key performance indicators (KPIs). By adopting the KPIs, companies can track, benchmark, and improve performance while presenting a more accessible profile to investors, stimulating capital investment. Read more