Open Access

Journal of Environmental Pollution and Management

RESEARCH ARTICLE ISSN: 2639-7269

The Study on the SWOT Analysis of Solar Energy in Ethiopia

Belay A*
Lecturer, Mechanical and industrial Engineering School, Institute of Technology, University of Gondar, Gondar, Ethiopia

Corresponding author: Belay A, Lecturer, Mechanical and industrial Engineering School, Institute of Technol-
*

ogy, University of Gondar, Gondar, PO Box 196, Ethiopia, Tel: 251913721058, E-mail: [email protected]
Citation: Belay A (2018) The Study on the SWOT Analysis of Solar Energy in Ethiopia. J Environ Pollut Manage 1: 204.
Article history: Received: 22 October 2018, Accepted: 26 November 2018, Published: 28 November 2018

Abstract
Background: Due to geographical location all place of Ethiopia will harness much amount of solar energy. Solar irradiation of Ethiopia
varies from 4.5 kWh/m2- 7.5 kWh/m2. The technology to convert this energy to electricity is also environmentally friendly.
Methods: Solar energy SWOT analyses in Ethiopia have been labelled. The current state of art in utilization and promotion of solar
energy is presented in this paper.
Results: The power shortage in the country drives the people to use solar energy for daily activity. In grid areas (towns and semi towns)
barberry shop and mobile charging shops used small solar PV system when there is power shutdown. In the country from 7.01 PWh
potentials of solar energy with rough estimation only 88.5MW can be utilized. Even though the people prefer to use solar energy, the
SWOT analyses identify some gaps in solar energy development. That should be solved for easily market penetration and promotion and
utilization of this energy.
Conclusions: The SWOT analyses solar energy in Ethiopia directs as to conclude as the following: to have interesting legal regulation
(for investors, contractor, seller and user), actual financial support for investors, tax waiving and start national certificate agency for solar
energy equipment’s, educating for the public, investor, contractor and decision makers in the field of solar energy development sector.
Keywords: Solar Energy; SWOT Analysis; Photovoltaic; Solar Energy Surveys; Tax; Solar Irradiation; Ethiopia

Introduction
Country Background
Ethiopia is located at 9.1450° N and 40.4897° E. Geographically, the country is located in horn of Africa. The Country is land locked

Figure 1: Relative location of Ethiopia in East Africa [2]

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and the second largest country in Africa. The economics is based on agricultural know a day it seems to shift to manufacturing. The
country is poor in energy production and the mainly power source is from hydro power [1].

Ethiopian Energy Situation

The minimum per capital energy consumption for subs - Saharan country and the world is 550 kWh/year. Whereas Ethiopian
country per capital consumption is 25 kWh/year. The above figure shows the country need to harness more energy source so as to
reach the minimum standards. This small energy also produced from hydropower. But the country has huge energy sources from
solar wind and other resources. Currently, energy is produced only from hydropower at low capacity Up to Know [3]. On the other
side the country has 45,000MW potential from hydropower and this make Ethiopia the second biggest Potential in Subs –Saharan
country [3].
Due to interruption of rain fall the country run-through famine and drought, this water shortage will affect the dams and in general
it face power shortage. So energy security should be the priority agenda. The government nowadays are looking other renewable
power sources like solar, wind and geothermal. This energy choice is environmental friendlies and cost effective once [4].

Ethiopian Solar Energy Resource

The country is located in tropical belt regions with 12 months and 5 days of sun shine (according to a local calendar). The solar
radiation received in all the regions of Ethiopia is different but it the minimum from high land areas is 4.5 kWh/m2 and maximum
is from low land areas in average 7.5kWh/m2 per day. The Figure 2 below shows global solar horizontal irradiation for selected
cities of the Ethiopian.

Figure 2: A monthly averaged daily global horizontal irradiation pattern in Ethiopia in 2012 [5]

Below Figure 3 shows solar irradiation zones with minimum and maximum values. At average solar irradiation received in land is
estimated around 6.0 kWh/m2 per day, which can be converted to 2200 kWh/m2 per year

Figure 3: Annual average daily total sum of DNI in kWh/m²/day for Ethiopia [6]

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Theoretical the country solar potential is estimated to 260 PWh. It is impossible to harness this value of energy from solar due
geographical factors. But it is estimated to have potential to use 196 PWh from land and 0.1PWh in roof top areas. Though,
geographical and environmental problems it is impossible to harness all the solar energy which reaches in land. But, for large solar
farms 7 PWh and for standalone 0.04 PWh solar Potential is existed in the country. The rooftop is suitable for Social institutions
(clinic, school and farmer training centers) and manufacturing buildings. The potential for standalone application of solar energy
is about 7 fold more than the current country electric production. Whereas the potential in term of land used for large farms is
1000 times suitable [7].

Ethiopian Demand for Solar Electricity

In Ethiopia solar PV is utilized for off-grid areas and grid connected areas. The off-grid application of lighting and income generation
activity. Solar PV for off-grid area to lighting social institutes like (health center, school and farmer training centers), Households
(including to run TV, radio), for telecom towers (network tower) and for town water supply (water pumping). Currently is not
practice by generating huge power and feed to national grid. Due to always black out people are practicing to use small scale solar
for house hold light and charging mobiles. In Ethiopia people are using solar energy in off-grid areas due to the following reasons:
scattered population, low investment cost, reliable power, create local jobs and incomes for distrusters [8].

No Application area Single item consumption Expected number Total demand Remark
Lighting & powering TV: Radio, 1Omillion
1 1W-100W/single home 60MW From Up to 2020
Fridge to off-grid house hold Household
Primary education, water supply, 300W/School& health center
2 40,000 centers 20MW
health and communication 1000W/water pumping
Assuming new
3 Telecom tower 15kWp/for single tower 500 new stations 7.5MW
500 towers
rural business in mobile charging, Non electrified
4 50W or more/ business room 10,000 homes 1MW
lighting and cafeteria kebles
Total 88.5MW
Table 1: Ethiopian solar energy demands

Literature
No Author Name Title Year Method used Remark
For Indian solar energy utilization &
1 Abdul Khader.J, et al SWOT Analysis of Solar Energy In India 2016 SWOT
promotion
SWOT analysis of the renewable energy For strategic thinking become extremely
2 A G Lupu, et al 2016 SWOT
sources in Romania –case study: solar energy useful in the decision-making process.
The study on the SWOT analysis of renewable Future development of renewable energy
Bartłomiej Iglin´ski1,
3 energy sector on the example of the 2015 SWOT sector in the Pomorskie Voivodeship &
et al
Pomorskie Voivodeship (Poland) Poland.
SWOT analyses of the national energy sector National strategy for sustainable
4 N.Markovska, et al 2009 SWOT
for sustainable energy development development in the country
Former research is done using this method can be summarized as follow
Table 2: Summarized table for researcher which used SWOT Method

Method
The methodology used in this study was using SWOT Analyses. SWOT is denoted S for Strength, W for Weakness, O for
Opportunity and T for Treat. SWOT is a common tool used for analysis to utilization and promotion of solar energy.
Many researchers were used this tool to analyses internal and external factors in development of solar (renewable energy)
development and utilizations in the country or within the regions. The projects which strength the above ideas are as follow. A
researcher used the tool for analyses of solar energy in India, renewable energy sources in Romania case of solar energy, the study
on renewable energy sector on the example of the Pomorskie Voivodeship (Poland) [1-4].
This Paper examined the internal and external environment factors. Internal Factors for utilization of solar energy in Ethiopia is
examined as Strength (S) or Weakness (W) and for those external factors can be examined under opportunities (O) and Threats
(T). In this paper, the SWOT is developed for solar energy utilization and promotion using standard data collection method. In this
paper data was collected from renewable energy sellers and stakeholders (survey), secondary data from published sources [9-11].

Result and Discussion

Strengths
1. The political commitment of the state to harness solar energy, availability of the solar master plan and grid based Universal

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energy access program (UEAP).

2. The Increasing trend of awareness and utilization of solar energy in off-grid and on grid areas of the country.
3. The energy security plan helps to increase the use of solar energy (main electrical energy source is from Hydro-power.).
4. The charge for electricity is low when compare to other east African country. The monthly energy bill will also reduce when
compare to other energy source. The only cost of this system is investment cost. Also power interruption is low when we compared
to other energy sources.
5. Proved technology available and local production proficiency
6. The resource availability all year round with high solar radiation. Since the country is located on solar belt zone.
7. For the country like Ethiopia the settlement of the people is far apart. Cable line is required to connect to the sources to the load,
whereas for solar energy no need of long travel only putting the solar energy into load site. Line loss in Ethiopia encounter (30%
loss) we will avoid such losses if we use solar energy.
8. Solar energy will install at anywhere and any place. The only thing is resource availability and area to locate, commonly unused
area like roof top and window is a common area to put a solar panel. Whereas other energy source they need a suitable area for
power generation.
9. Solar energy is environmentally friendly. During the operation, there is no Co2 emitting to the environment; Ethiopia is also a
country which made a signature in the Kyoto Protocol to reduce environmental emission.
10. Ethiopia is located within a solar belt. Most areas are suitable for solar energy utilization. And electric coverage of the country
is low, almost 80% the people live in rural areas without grid power.
11. In Ethiopia, solar lanterns and small solar system are creating jobs for the young technicians.

Weaknesses
1. Even though Ethiopia is located on a solar belt, there also some area with snow, in such area solar energy is limited.
2. Except the panel, all solar equipment will import and the investment cost is when compared to the other sources.
3. The cost of production of energy from solar is high when we compare to the conventional once.
4. In Ethiopia, solar energy awareness is limited to academic institutions rather than the people.
5. High maintenance cost, high frequent breakdown this too well made serious problem for sites which are located in remote areas,
difficulty in finding technician even.
6. In Ethiopia, solar energy sector, there are no subsidies to increase the access of the energy to the farmer and low incomes.
7. Many donors are donating solar energy, but there are no coordination and event quality control of the solar system.
8. Feed-in-tariffs law is not in place, low involving of financial institutes and private sectors in the development and utilization of
solar energy technology.
9. Since the solar technology is imported abroad the Taxes and duties are imposed in these systems. That will increase the investment
cost.
10. Lack of research and development office in the solar energy systems, on giving analysis information for the user and government
on strategic outlook, supply and business models.

Opportunities
1. Ethiopia is a country which imports oil from the neighboring country using the ports of Djibouti and Sudan. Since the international
barely price increased the government has been giving subsidies to the oil. Before 3 years (since 2015) the government avoids such
subsidies to the oil and the oil price is increasing every month. On the other hand the country has a huge amount of solar energy,
and the government should work to develop on power generation and on the appliance.
2. In Ethiopia it is possible to generalize the consumers as households, small business and institutions. The main institutions which
use solar energy are Health centers, telecommunication for mobile stations and school. In overall country, 80% of the people are
living in rural areas in this area we will find those consumers.
3. Currently, there are huge retailer shops and dealers in the Ethiopia solar energy market. Supplies have many outlets in every
village in the country. But suppliers are limited only for lanterns, rather than small photovoltaic systems.
4. In Ethiopia their vast potential for off-grid for electricity generation and mobile charging.
5. Currently, Ethiopian Standard Agency (ESA) is preparing a document for Ethiopian standard and protocols for testing service
for (imports produce, service providers and consumers). Now the Authorities are using Africa-lighting certified products to enter
into the market. There is also lack to control the market; un-certified product is also entering into the market unknowingly.
6. In Ethiopia the demand for lighting, mobile charging, radio and television support solar systems in off-grid area of the country.
7. Solar Technology is maturing, solar lanterns. Solar home systems are user friendly, easier to disseminate and operate. By reading
the manual and with some sort of training some young men/wen to install the system and also job creation medium and income
generation areas.

Threats
1. The investment cost to install, maintain and distribution of solar energy, only high investors are involved in this area.
2. Ethiopian government didn’t subside for solar energy dealers, importers, and for the user also.
3. In Ethiopia the settlement of the people is sparse (low density) this makes huge investment for interring connecting of the load
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to a generation site.
4. Less priority is given to solar when compared to the other renewable resource like hydro.
5. Increasing of the populations

Conclusion
This research paper concerns the present status of Ethiopian solar energy sector by performing an SWOT analysis. The SWOT
analysis has led to the conclusion of the fast growth solar energy development in Ethiopia strongly depends on education the
public, investor, government and developers. The preference to use solar energy is rising and certainly the demand will increase the
near future. The government should to work on two things. The first one is on developing skill man power, to maintain and install
solar panels. Still in the country there are such schools. Secondly, the government should work to reduce the cost of solar panel.
Generally it concludes that, if the government is takes attention on this sector, the government will be benefited by creating a job
for youth and for clean development to country economy.

References
1. Aklilu Dalelo (2001) Rural electrification in Ethiopia: opportunities and bottlenecks, Addis Ababa University, College of Education, Department of Geography
and Environmental Education, Addis Ababa, Ethiopia.
2. Zereay Tessema (2012) Mainstreaming sustainable energy access in the development planning process of Ethiopia ,KTH School of Industrial Engineering and
Management, Energy Technology EGI-2012-096 MSC, Division of Energy and Climate Studies (ECS) and SE-100 44 STOCKHOLM.
3. Power Sector Market Report – Ethiopia. Ethiopia Ministry of Water and Energy Addis Ababa, Ethiopia.
4. Ethio Resource Group (2012) Solar energy vision for Ethiopia Opportunities for creating a photovoltaic industry in Ethiopia. International Solar Energy Institute,
Freiburg, Addis Ababa.
5. Schillings Christoph, Meyer Richard, Franz Trieb (2004) Solar and wind energy resource assessment; high resolution solar radiation assessment for Ethiopia.
6. Tucho GT (2014) Assessment of renewable energy resources potential for large scale and standalone applications in Ethiopia. Renewable and Sustainable Energy
Rev 40: 422-31.
7. Tom Hamlin (2012) Solar and wind resources assessment (SWERA). United Nation Environ prog.
8. Abdul khader J (2016) SWOT Analysis of Solar Energy in India. Int J Commerce Bus and Manage 5: 2.
9. A G Lupu, A Dumencu, M V Atanasiu, C E Panaite, Gh Dumitrașcu, et al. (2016) IOP Conf Ser: Mater Sci Eng 147: 012138
10. Bartłomiej Iglinski (2015) The study on the SWOT analysis of renewable energy sector on the example of the Pomorskie Voivodeship (Poland). Clean
Technologies and Environmental Policy 18: 45-61.
11. Ms Myrto Theofilidi (2009) SWOT Analysis Solarcombi+ project, Europe.

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