Riyadh – Mubasher: ACWA Power has signed two long-term power purchase agreements (PPA) with Ethiopia’s state-owned Ethiopian Electric Power Company (EEP) for two 125-megawatt (MW) solar photovoltaic (PV) projects.
The agreement sets a tariff of $0.02526/kWh for 20 years, according to a company statement.
ACWA Power won the bid for the two PV plants during the first round of Ethiopia’s solar program and signed a Letter of Intent with the Ethiopian government in October 2019.
The solar plants are estimated to power 750,000 homes in Ethiopia and offset 320,000 tons 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 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 4,300 MW to 17,300 MW by 2020,” said Paddy Padmanathan, President and CEO of ACWA Power.
