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Previous studies have shown that the global diffusion of renewable energy technologies has been rather slow. The challenges facing the diffusion of renewables in developing countries, in particular, have been complex, even though such nations are generally known to be richly endowed with renewable resources. For instance, Ethiopia, one of the highest solar radiation-endowed countries in sub-Saharan Africa, has a huge renewable potential that has yet to be exploited through the application of appropriate renewable energy technologies. This study is an attempt to explore the systemic problems and barriers affecting the diffusion of solar (energy) innovations in Ethiopia. The Innovation Systems (IS) framework is used for the analysis of this embryonic solar market and the overall diffusion of solar innovations. Data for the study were collected from the relevant stakeholders through semi-structured interviews, observations and archival document reviews. The study identified that there are known diffusion barriers and systemic problems that have constrained the diffusion of solar innovations in the country. The lack of integration among solar actors and the financial problem facing both sides of the supply chain have been identified as critical factors behind the slow rate of diffusion. This article makes recommendations for solar actors to identify faster diffusion mechanisms and for further research on how to build a well-functioning IS in the country.

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The diffusion of renewable energy technologies (RETs) has been progressing very slowly in global scope, particularly in developing countries where the diffusion challenges for renewable are greater. Among potential actors in the promotion and diffusion of rural-based renewable energy innovations, NGOs and NPOs have been mentioned as promising actors. However, empirical studies that show the role of the actors and the way they can be system builders by diffusing existing technologies have been very rare. This paper discusses the practices of an NGO in Ethiopia (Solar Energy Foundation) and an NPO in Bangladesh (Grameen Shakti) and shows how local technological innovation systems can be built by key actors in the context of developing countries. The study sheds light on the process of system building for accelerated diffusion of RETs in the context of developing countries. Using a theoretical framework, we compared the approach, technology adoption trend (solar home systems diffusion), and common challenges facing both actors in their respective countries. The two empirical cases which are in different geographical contexts provided lessons on the similarities and differences of system building practices and emerging innovation systems for diffusion of RETs in developing countries.

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