29 July 2026: The African Development Bank Group’s Board of Directors has approved a $2 million reimbursable grant from the Sustainable Energy Fund for Africa (SEFA) to support the development of two renewable power mini-grids in Ethiopia under the Distributed Renewable Energy and Agriculture Modalities (DREAM) programme.
Approved on 17 July, this financing forms part of the $8 million programmatic financing envelope for DREAM approved in May 2024. It will support the Lelicho and Murche mini-grid sub-projects, developed by RVE.SOL ETH Energy Generation Solutions PLC, and will contribute up to 50% of mini-grid project capital expenditure.
DREAM is a first-of-its-kind programme that addresses the water-energy-food nexus by unlocking a commercially viable rural electrification model that combines renewable energy mini-grids with productive-use agricultural demand. Through its innovative ABC model—Anchor loads, Business demand and Community connections—the programme improves project economics, strengthens revenue certainty, and creates a scalable pathway for private-sector investment in underserved rural markets.
“Water, energy and food security are deeply interconnected and fundamental to Ethiopia’s sustainable development,” said Habtamu Itefa Geleta, Ethiopia’s Minister of Water and Energy. “Through DREAM, Ethiopia is pioneering an integrated approach that combines renewable energy access with irrigation and agricultural productivity. We are pleased to partner with the African Development Bank and other stakeholders to advance this innovative initiative and ensure the DREAM becomes a reality.”
“DREAM demonstrates how innovative partnerships and catalytic concessional finance can unlock private-sector investment in underserved markets,” said Daniel Schroth, Director for Renewable Energy and Energy Efficiency at the African Development Bank. He described the project as a scalable model that combines energy access, agricultural productivity and climate resilience, ensuring that energy access serves as a driver of jobs, livelihoods and inclusive economic growth.
Carol Koech, Vice President for Africa at the Global Energy Alliance for People and Planet, said: “DREAM is the kind of integrated solution needed to accelerate sustainable rural development. When renewable energy is paired with irrigation, market access and financial tools, it powers opportunity, strengthens livelihoods and helps infrastructure become economically viable for rural communities. We are pleased to partner with AfDB and the Government of Ethiopia to help demonstrate a model that can be scaled across the continent.”
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About SEFA: The Sustainable Energy Fund for Africa is a multi-donor special fund providing catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. Its overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with Mission 300 and Sustainable Development Goal 7.
