Enel, acting through a consortium led by its renewables arm Enel Green Power (“EGP”) and including leading Ethiopian infrastructure company Orchid Business Group, has been selected as the preferred bidder for a 100 MW PV project following a solar tender launched by local utility Ethiopian Electric Power (“EEP”) within the framework of the country’s Growth and Transformation Plan (“GTP 2”). The consortium has the right to develop, build and operate the 100 MW1 of PV capacity in Metehara. The Ethiopian Government’s GTP 2 is expected to collect nearly 12,000 MW of new hydro, wind, geothermal and solar capacity in partnership with the private sector, with the aim of meeting the country’s electrification needs while diversifying its generation mix in line with the government’s energy plan for the years up to 2020.
“Ethiopia has all the potential to become a key market for Enel’s strategy in Africa,” said Antonio Cammisecra, Head of Enel Green Power. “The country has plenty of renewable sources that can generate energy at affordable rates thanks to modern green technologies. Additionally, Ethiopia boasts a stable regulatory framework, based on tenders and PPAs, and steady energy demand growth, which is also sustained by a long-term electrification plan. We are more than happy to invest in this country, with the aim of meeting its energy demand through our renewable energy expertise, helping to boost Ethiopia’s overall development while supporting local communities with our sustainability initiatives.”
The EGP-led consortium will be investing approximately 120 million US dollars in the construction of the solar PV plant. The facility will be located in Metehara, in the Oromia region, almost 200 km east of Addis Ababa, an area that enjoys high levels of solar radiation. The Metehara plant is expected to enter into operation in 2019. Once up and running, the facility will be able to generate approximately 280 GWh per year, while avoiding the emission of around 296,000 tonnes of CO2 into the atmosphere. The solar park will be supported by a 20-year power purchase agreement (PPA) with EEP for all of the energy generated by the plant.
Ethiopia has an installed generation capacity of around 4.3 GW, 90% coming from hydropower, 8% from wind and 1% from thermal sources2, and a major solar, wind and geothermal as well as hydro potential. Approximately 27.2% of Ethiopia’s population of 102 million have access to electricity3.