The project aims to reduce Ethiopia’s energy-related CO2 emissions by approximately 2 million tons CO2e by promoting renewable energy and low greenhouse gas producing technologies as a substitute for fossil fuels and non-sustainable biomass utilization. It seeks to implement a more private sector-driven and market-based approach towards promoting renewable energy technologies in rural communities in Ethiopia.

The project consists of four components: 1) Strengthened Regulatory and Legal Framework based on National Standards; 2) Rural Public Awareness Campaign on Renewable Energy Technologies; 3) Sustainable Financial Mechanism (SFM) for RETs for rural households; 4) Business Incubator to Promote Greater Entrepreneurship for Investment in RETs.

Approximately 800,000 additional households (4 million people) will benefit from the project by being enabled to invest in approximately 200,000 small-scale solar PV products (about 2.5 MWp total capacity) and approximately 600,000 improved cook-stoves.