A systematic review of environmental determinants of renewable energy performance in Ethiopia: A PESTECH analysis

This article identifies and analyses environmental and institutional factors affecting renewable energy initiatives in a developing country, namely Ethiopia. It employs qualitative data and an innovative environmental scanning model (ESM) to gauge the effect of political, economic, social, technological, ecological, cultural, and historical (PESTECH) factors on renewable energy production and consumption in the country. Some factors are shown to serve as facilitators while others act as barriers renewable energy initiatives in the country. The following factors, an anti-private business climate in the energy market, lack of technical know-how, and scarcity of financial and skilled human resources emerge as leading barriers. The country's largely untapped renewable energy resource base, indigenous knowledge of renewable energy sources, and the government's avowed commitment to promote renewable energy demand and supply are found to be the prominent facilitators. It is recommended that the Government of Ethiopia (GoE) seeks to encourage investment in the renewable energy sector from domestic and international entrepreneurs. Additionally, the option of enlisting foreign capital input to meet the high upfront cost of developing renewable energy infrastructure should be accorded serious consideration. The main findings and these recommendations are potentially valuable not only for researchers and policy makers in Ethiopia but also other developing countries.