Ethiopia Signs Agreement for the Construction of 500 MWp Solar Energy Projects

UAE independent power producer (IPP) Masdar Clean Energy will construct solar PV power plants in Ethiopia. The cumulative capacity of the power plants will be 500MWp. The company signed an agreement with the Ethiopian government.

Masdar, under the agreement, will develop, finance, operate and maintain the solar photovoltaic plants. The company will also be responsible for the construction of transmission infrastructure to evacuate the generated power. The energy produced will be supplied to the state-owned Ethiopian Electric Power (EEP) electricity grid via power purchase agreements (PPA) set to be concluded before the end of the year.

Read also: Siemens Gamesa Begins Construction of Assela Wind Farm in Ethiopia.

Masdar intends to begin commercial operations at the solar power plants by next year. According to Mohamed Jameel Al Ramahi, Masdar’s CEO, the initiative will boost Ethiopia’s efforts to diversify its power mix and boost economic development. Ethiopia currently depends heavily on hydropower which makes up 89 per cent of its total installed capacity of 4,207 MWp. However, reduced river flows due to drought in recent years have led to declined energy output.

The government is implementing a World Bank-funded programme, Scaling Solar” programme to diversify its energy mix. Saudi IPP Acwa Power will develop solar power projects in Gad and Dicheto (250MWp) eastern Ethiopia. The country is also looking to harness its geothermal potentials in  Corbetti and Tulu Moye and is constructing a wind farm that will provide 100 MW to the grid.

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