ACWA Power has announced that it has been 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 and Ethiopia Electric Power (EEP), the state-owned electricity producer, and the Ministry of Finance had signed a Letter of Intent, earlier this month. This will be followed by an agreement for a long-term power purchase agreement for projects at $2.52 cents/kWh. for a period of 20 years.
According to a statement from ACWA Power, these 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.
Paddy Padmanathan, CEO and president of ACWA Power, said that it is a remarkable achievement to have been selected to deliver these projects, since they are first to be tendered under the new public-private-partnership in Ethiopia.
He added: “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.”
Meanwhile, Rajit Nanda, chief investment officer at ACWA Power, said: “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.”
ACWA Power also stated that the two projects that were tendered are estimated to power 750,000 homes and offset 320,000 tonnes of carbon dioxide per year.