Saudi Arabia’s energy firm ACWA Power has been awarded USD 300 million worth solar contract to develop two photovoltaic plants with a combined capacity of 250 MW after its bid was approved by the Public-Private Partnership Board (PPP Board) in Ethiopia.

The Gad and Dicheto projects will be built in the eastern states of Somali and Afar. The solar plants are part of the six-project portfolio that make up round two of Ethiopia’s Scaling Solar program. Scaling Solar aslo has programmes in Senegal, Zambia and Madagaskar. The projects are sponsored under the Scaling Solar program initiated by the International Finance Corporation (IFC), a unit of the World Bank. The program aims to provide private funding for solar development in emerging markets. 

ACWA Power was one of the 12 shortlisted companies that submitted their Request for Proposals (RFP) last February. 7 of these companies attended the site and the bidder´s conference and 5 submitted the proposals.

ACWA Power offered solar power purchase tariff of US$0.02526 per kWh for both sites. Currently, this is the lowest tariff in Africa and one of the lowest tariffs globally.

ACWA Power is a developer, investor and operator of power generation and desalinated water plants across 11 countries in the Middle East, North Africa, and Southern Africa and in South-Eastern Asia.

Ethiopia aims to install 300 MW of solar power by 2020.