Acwa Power signs agreements for Ethiopia solar projects
Saudi Arabia’s Acwa Power has signed power purchase agreements (PPA) for two 125MW photovoltiac (PV) solar independent power producer (IPP) projects in Ethiopia
Saudi Arabia’s Acwa Power has signed power purchase agreements (PPA) for two 125MW photovoltiac (PV) solar independent power producer (IPP) projects in Ethiopia.
Acwa Power signed the 20-year PPAs with the Ethiopian Electric Power (EEP) on 22 December for a tariff of $2.526cents a kilowatt hour (kWh). The Saudi developer also signed a letter of implementation during the signing ceremony in the Ethiopian capital of Addis Ababa.
Acwa Power had been selected by state utility EEP, in partnership with the country’s Finance Ministry, to develop the plants in October.
The combined 250MW plants are expected to provide power for 750,000 homes in Ethiopia, offsetting 32,000 tonnes of carbon dioxide a year. The plants will be located in Dicheto and Gad, located in the Afar and Somali regions respectively.
Acwa Power saw off competition from four other bidders to win the deal. The PPP body had prequalified 12 developers to participate in the tender.
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