ACWA Power to Drive Solar Energy Development in Ethiopia

January. 2, 2019 /PVTIME/ -- 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 USD 2.526 cents/kWh over
20 years. Implementation Agreements were also signed with the Government of
Ethiopia, represented by the Ministry of Finance. The signing ceremony was
attended by H.E. Abiy Ahmed Ali, Prime Minister of Ethiopia, H.E. Sami bin
Jameel Abdullah, Saudi Ambassador to Ethiopia, H.E. Ato Ahmed Shide, Ethiopia’s
Minister of Finance, Dr. Abraham Belay, Chief Executive Officer of EEP, Tilahun
Haile, Director of Ethiopia’s Public-Private Partnerships Directorate General
(PPP-DG) of the Ministry of Finance, and Paddy Padmanathan, President and Chief
Executive Officer of ACWA Power.

ACWA Power won the bid for the two PV plants of 125 MWac each during the first
round of Ethiopia’s solar programme organised 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.

“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” - H.E. Ato Ahmed Shide, Ethiopia’s Minister of

“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” - Tilahun
Haile, Director of Ethiopia’s Public-Private Partnerships Directorate General
(PPP-DG) of the Ministry of Finance

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.

“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 4,300
MW to 17,300 MW by 2020” - Paddy Padmanathan, President & CEO of ACWA

“The 250MWac projects are the first of a kind in the
Ethiopian utilities landscape and will be a support the diversification of the
energy mix within the country.” Padmanathan added.

“This partnership is a strong reflection of the Ethiopian
government’s trust in ACWA Power’s expertise and business model. Our strategy
to provide low tariffs not only cements ACWA Power as the partner of choice,
but is a reinforcement of our ability to help sustain the nation’s positive economic
growth and improve living standards by providing safe and affordable access to
electricity” - Rajit Nanda, Chief Investment Officer of ACWA Power

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