Solar energy generation accord has signed

Published by Corporate Commnucation on

An agreement has been signed to construct two solar power plants in the Afar and Somali region. According to the press release which issued at the Hilton Hotel in December 19/2019,the accord has signed between the Ministry of Finance, Ethiopian Electric Power and ACWA Power Company.

 Teshome Tafese (PhD), State Minister of Finance announced that the two solar power projects will be built at Gad, in the Somali Regional State and the second project will erect at Dechoto, in the Afar Regional State.

The state Minister, also pointed out that, the two solar projects have an installed capacity of generating 250 MW, each having a capacity of 125 MW of power worthing USD 300 million for construction.

According to Dr. Teshome, the agreement will play a significant role engaging the private sector in the energy development thereby bouncing the energy sector and alleviating the government’s debt burden.

Tilahun Tadesse, Director General of Public and Private Partnership in the Ministry of Finance,  said that, up on completion of both projects, the  ACWA Power Company will be sold the electricity at 2.526 US cents per killo watt hour to Ethiopian Electric power which is lower price than the electric tariff in the world as well as in Africa. It is known that the ACWA Power Company will run the power plants for 20 years.

Ato Andualem Siaa`, Executive Officer of Engineering Department at Ethiopian Electric Power, stated that, the construction of  Gad solar project is expected to be completed in 18 months and Dechoto project in 15 months.

Various studies indicate that Ethiopia has an immense capacity to generate 50 thousand MW from Hydro, 1.3 million MW from Wind, 10,000 MW from geothermal including solar energy.

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