Saudi Arabian developer ACWA Power is to build two 125MW solar farms in Ethiopia.
Power purchase agreements have been signed with the state-owned electricity producer Ethiopian Electric Power for the electricity from the projects at a price of $25.26 (€22.26) a megawatt-hour.
ACWA Power won the bid for the two PV plants in the first round of Ethiopia’s solar programme organised by the country’s Public-Private Partnerships Directorate General earlier this year.
The company was selected as the winning bid out of 12 pre-qualified bidders.
The projects will be the first solar farms developed by ACWA Power in Ethiopia.
Ethiopia Minister of Finance Ato Ahmed Shide said: “Ethiopia has highly ambitious growth plans that require a reliable, secure and affordable supply of energy.
“Our focus is to expand our renewables capacity and we are confident that ACWA Power’s leadership and international expertise in this sector will benefit us significantly.
“We are proud to be working with ACWA Power on the lowest-tariff project in Africa. We believe this partnership will aid us tremendously in creating long term sustainable value for our nation and communities.”
Director of Ethiopia Public-Private Partnerships Directorate General director Tilahun Haile said: “The two projects are key to strengthening our renewable energy delivery.
“Though the first under the public-private partnership framework, we believe that they will set the stage for future collaborations in the Ethiopian energy sector.
“With the PPAs in place we are confident of achieving the development and implementation of these two solar projects in a timely manner and securing sustainable power to meet our growing demands.”
ACWA Power president and chief executive Paddy Padmanathan said: “The signing of the PPAs is of great importance and signifies the confidence that the Ethiopian government has in our ability to support their energy building ambitions.
“We are pleased to have been selected to deliver the first projects to be tendered under the new public-private partnership framework in Ethiopia.
“As a leader in the renewable energy sector, we are confident that our expertise will help support the government in achieving its goal of increasing the electricity generation capacity from the current 4300MW to 17,300MW by 2020.”