Saudi's ACWA Power inks PPP for 250MWac solar plants in Ethiopia
Firm signed power purchase agreements with Ethiopian Electric Power at $2.526 cents/kWh for over 20 years
Saudi Arabia-based ACWA Power, a developer and operator of power generation and water desalination projects, has inked power purchases agreements (PPA) with Ethiopian Electric Power (EEP) for two 125MWac solar photovoltaic (PV) projects in Ethiopia at $2.526 cents/kWh for over 20 years.
The company also signed implementation agreements the Government of Ethiopia that was represented by the Ministry of Finance.
The solar PV projects are expected to fulfil power needs of 750,000 homes in Ethiopia and offset 320,000 tonnes of carbon dioxide each year. The new plants will be located in Dicheto in Afar, and in Gad in Somali region.
In October 2019, ACWA Power had won bid for the two plants — among the 12 pre-qualified bidders — that have a combined value of 250MWac at the solar programme organised by PPP-DG under the PPP law and signed a Letter of Intent with the finance ministry and EEP.
Speaking about the project, president and chief executive officer of ACWA Power, Paddy Padmanathan, said that the project is the first to be tendered under the new PPA framework in Ethiopia.
“Our expertise will help support the government in achieving its goal of increasing the electricity generation capacity from the current 4,300 MW to 17,300 MW by 2020,” he added.