ACWA Power has penned two long-term power purchase agreements (PPAs) with Ethiopia’s state-owned Ethiopian Electric Power for 250MWac of solar in the nation.
ACWA will sell the power at a price of US$0.02.526/kWh – what was billed as a record low for Africa back in September – over the course of 20 years, while implementation agreements were also signed with the Government of Ethiopia.
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The project developer heralded the agreements as a first of their kind for an Ethiopian utility.
Letters of intent were exchanged between ACWA and Ethiopia’s finance ministry in October this year, following ACWA landing contracts within the first round of auctions under Ethiopia’s solar programme.
ACWA fended off stiff competition from 12 pre-qualified bidders within the auction process.
Paddy Padmanathan, chief executive at ACWA, said the agreements signified the confidence the nation has in its ability to support its renewables ambitions.