ACWA Power,a leading international developer and operator of power generation and water desalination projects signed two long-term power purchase agreements (PPA) with Ethiopia’s state-owned electricity producer Ethiopian Electric Power (EEP) for two 125 MWac solar photovoltaic (PV) projects at US$2.526 cents/kWh over 20 years.
ACWA Power won the bid for the two PV plants of 125 MWac each during the first round of Ethiopia’s solar program organized by the PPP-DG under the new PPP law and signed a Letter of Intent with the Ministry of Finance and EEP in October 2019.
With a combined capacity of 250 MWac, the PV projects are estimated to power 750,000 homes in Ethiopia and offset 320,000 tonnes of carbon dioxide per year. The new plants will be located in Dicheto, in the Afar region, and in Gad, in the Somali region of the country.
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 and wind assets in Morocco, South Africa, and Egypt, fuelling the power needs of respective communities.
