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Solid biomass-based energy is expected to retain its position as a sole fuel source for households in the rural part of Ethiopia unless alternative energy sources are introduced. Synthesizing small-scale renewable alternative energy sources, such as biogas energy, into the energy mix has become an important strategy to overcome the energy hunger of its rural residents. As part of the government policy, small-scale biogas digesters have been installed in selected districts and regions of the country since 2007. There is, however, limited evidence on whether or not the intended objectives of the domestic biogas initiative have been actualized by the participants of the project. This paper, therefore, intends to investigate the economic benefits of domestic biogas plants along with the challenges facing it and future prospects of the biogas initiative in selected districts of northern Ethiopia.

Returns, setbacks, and future prospects of bio-energy promotion in northern Ethiopia: the case of family-sized biogas energy