ACWA Power and Ethiopia Electric Power (EEP), the state-owned electricity producer, and the Ministry of Finance signed a letter of intent. (Image source: ACWA Power)
ACWA Power, an International developer and operator of power generation and water desalination projects, was awarded two 125 MWac solar photovoltaic (PV) projects by the Public Private Partnership Directorate General (PPP-DG) of the Ethiopian Ministry of Finance
ACWA Power won the bid for the plants during the first round of Ethiopia’s solar programme organised under the new PPP law.
ACWA Power and Ethiopia Electric Power (EEP), the state-owned electricity producer, and the Ministry of Finance signed a letter of intent. The entities will proceed to sign a long-term power purchase agreement for the projects at US$2.52 cents/kWh over a time span of 20 years before the end of 2019.
With a combined capacity of 250MWac, the projects will contribute in addressing the current energy shortfall as well as diversifying the energy mix in Ethiopia, where the government is currently working to increase the electricity generation capacity of the country from 4,300MW today to 17,300MW by 2020. The new plants will be located in Dicheto of the Afar region, and in Gad of the Somali region.
“We welcome the opportunity to help the country realise its incredible renewable resource potential and deliver significant economic, social and environmental value,” said Paddy Padmanathan, CEO of ACWA Power.
“Our entrance into Ethiopia is yet another attestation of our impressive track record to win bids at low tariffs, and transform the energy sectors of growing economies. We thank the PPP-DG and the government for their transparent tendering process and professional approach under the framework of the new PPP law,” said Rajit Nanda, chief investment officer.
