In a significant step towards self-reliance in energy, Solargoda Industries S.C., the first Ethiopian company to manufacture solar panels from locally sourced silica sand, has announced its entry into the solar energy market. The company aims to construct a factory funded through share sales, which began recently with contributions from eight local investors.

Mekonon Hagos (PhD), Chairperson of Solargoda Industries, shared with Capital that the company will utilize high-purity silica sand mined from the Goda area in the eastern zone of the Tigray region, which has been researched to be 98.6 percent pure. This local sourcing strategy not only cuts down on the foreign currency spent on raw materials but also aligns with the company’s mission to address the nation’s energy shortages and potentially export to neighboring countries.

By producing solar panels domestically, Solargoda Industries intends to reduce costs associated with importing and assembling foreign-made panels. The strategic use of local silica sand, a critical component in solar panel production due to its role in converting sunlight to electricity, is poised to transform the sector.

The Ethiopian energy market relies heavily on imports for silica sand, sourcing mainly from Italy, India, and China, despite the presence of local raw materials. Currently, Ethiopia has about eight solar panel installation companies and vast potential for renewable energy generation, with the capacity to produce over 60,000 megawatts from hydroelectric, wind, solar, and geothermal sources.

The Ethiopian government (GOE) has ambitious plans to expand the country’s power generation capacity from the current 5,200MW to 17,000MW over the next decade. However, with ongoing economic development and population growth, the demand for electricity is projected to continue outstripping supply.

Solargoda’s initiative to raise 10 billion birr capital for solar panel production within five years could play a crucial role in meeting these energy needs. This venture not only supports Ethiopia’s energy sector but also signifies a pivotal move towards sustainable development by harnessing local resources for renewable energy production.