ACWA Power and Ethiopia Electric Power (EEP), the state-owned electricity producer, and the Ministry of Finance signed a Letter of Intent on the 15th of October 2019. The entities will proceed to sign a long-term power purchase agreement for the projects at USD 2.52 cents/kWh over a time span of 20 years before the end of 2019. With a combined capacity of 250MW solar project, the two 125MW 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 4,300 MW today to 17,300 MW by 2020. The new plants will be located in Dicheto, in the Afar region, and in Gad, in the Somali region of the country.
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. At ACWA Power, we firmly believe that reliable, safe delivery of power and water is the first step to developing future-ready economies, and we will be playing our part in ensuring Ethiopia and its people to unlock their full potential – Paddy Padmanathan, Chief Executive Officer 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 – Rajit Nanda, Chief Investment Officer of ACWA Power
The 250MW solar project that were tendered in 2019 are estimated to power 750,000 homes and offset 320,000 tonnes of carbon dioxide per year. ACWA Power was selected as the winning bid out of 12 pre-qualified bidders. While these solar projects will be ACWA Power’s first venture in Ethiopia, the company already operates in Africa with solar assets in Morocco, South Africa and Egypt, fuelling the power needs of respective communities.