Bridging the Energy Gap in Ethiopia with Off-Grid Solar Systems

The challenge: expanding energy access in Ethiopia

Ethiopia is facing a critical energy challenge—only 48% of households have access to electricity, and rapid population growth continues to strain the country’s energy infrastructure. To address this, the Ethiopian Government has committed to universal electrification by 2030, leveraging a mix of on-grid and off-grid energy solutions. While this represents a significant development challenge, it also offers a unique opportunity for private sector investment in renewable energy to drive economic growth, job creation, and carbon emission reduction.

The solution: scalable solar energy for off-grid communities

Recognizing the potential of solar energy in Ethiopia, TRAIDE initiated outreach to Dutch companies with proven energy solutions for underserved communities. Among them, SPARK Energy stood out for its focus on modular, off-grid solar systems tailored to rural communities in emerging markets. SPARK’s approach—working through local distributors to build sustainable energy businesses—aligns with Ethiopia’s long-term electrification goals.

However, entering the Ethiopian market came with challenges: high import tariffs, foreign currency shortages, and complex regulatory frameworks made it difficult for SPARK to scale its operations effectively.

Unlocking market access through strategic support

TRAIDE played a key role in SPARK Energy’s successful entry into the Ethiopian market. Consistent with its mission to leverage private sector solutions for local challenges, TRAIDE guided SPARK in navigating Ethiopia’s complex business environment and effectively introducing its solar energy solutions to local households. Support included providing in-depth market intelligence, adapting SPARK’s business model to comply with local regulatory and economic conditions, advising on critical challenges such as high import tariffs and persistent foreign currency shortages, and establishing a strategic partnership with a local distributor – Modify.

Scaling up: Bringing clean, decentralized energy to Ethiopian households

The partnership between SPARK Energy and Modify led to the distribution of 3,300 solar home kits—a vital first step in expanding off-grid electrification in Ethiopia. SPARK is committed to continue scaling its renewable energy solutions across the country, ensuring decentralized, community-owned power systems that enable access to electricity for thousands of rural households. The impact is far-reaching: families gain access to clean, reliable power for education, small business, and daily life—long after the sun goes down.

Are you interested in exploring the energy market in Ethiopia or do you have another innovative and impactful business solution? Reach out to us at ethiopia@traide.org.