Acwa Power wins bid for two 125MW solar projects in Ethiopia
Saudi-based investor awarded projects by Public Private Partnership Directorate General of the Ethiopia Ministry of Finance
Saudi-based investor and operator of power generation and desalinated water plants Acwa Power has been awarded two 125MW solar photovoltaic (PV) projects by the Public Private Partnership Directorate General (PPP-DG) of the Ethiopian Ministry of Finance during the first round of Ethiopia’s solar programme organised in line with its recent PPP law.
The letter of intent was signed by Acwa Power, state-owned electricity producer Ethiopia Electric Power (EEP), and the Ministry of Finance on 15 October, 2019, with the entities likely to sign another long-term power purchase agreement for the projects at $2.52 cents/kWh over 20 years before the end of 2019.
The solar projects, which have a combined capacity of 250 MW, will address Ethiopia’s current energy shortfall, as well as diversify its energy mix, as the nation aims to increase its electricity generation capacity from 4,300MW in 2019 to 17,300 MW by 2020.
Commenting on the award, chief executive officer of Acwa Power, Paddy Padmanathan, said: “It is a remarkable achievement to have been selected to deliver these projects, the first to be tendered under the new public-private partnership framework in Ethiopia. We welcome the opportunity to help the country realise its incredible renewable resource potential and deliver significant economic, social and environmental value.”