Abu Dhabi based renewable energy company, Masdar has signed an MoU with the Government of the Federal Democratic Republic of Ethiopia to explore the development of solar power projects across Ethiopia. As part of the agreement, a total solar power capacity of 500 MW is to be developed across the country along with related grid infrastructure.
The agreement covers the development, financing, design, engineering, procurement, construction, testing, commissioning, insurance, ownership, operation, maintenance and transfer of solar PV plants, and the infrastructure required to transmit the electricity. Power purchase agreements and other relevant agreements are expected to be signed later this year. Meanwhile, commercial operations are expected to start in 2022.
“This initiative will mark a significant step forward for Ethiopia’s efforts to diversify its energy mix and to drive economic development,” said Al Ramahi. “Masdar has been a catalyst for renewable energy and clean-tech innovation in more than 30 countries around the world, and we look forward to working with the Government of Ethiopia to help deliver universal access to electricity for all its people.”
Electricity access still remains a concern in Ethiopia with more than half of the country’s population lacking access to electricity. The country gets almost all its energy from hydropower at present which is vulnerable to fluctuations in rainfall. Ethiopia’s National Electrification Program aims to achieve universal energy access by 2025. Further, the government is also focusing on diversifying its energy mix with wind, solar, and geothermal sources to reduce its dependence on hydropower.
