During a high-level virtual event with guests from the German and Ethiopian political and private sector as well as the scientific community and in the presence of H.E. Dr. Seleshi Bekele, Minister of Water, Irrigation and Energy (MoWIE), the Ethiopian-German Energy Cooperation was officially launched on 1 September 2020 in Addis Ababa, Ethiopia. This event also marks the kick-off of its first big initiative – the Innovation Competition on “Decentralised Energy Solutions in Ethiopia”. It is now opened to Ethiopian students’, researchers’ and entrepreneurs’ business ideas for decentralised electrification approaches that demonstrate unique innovation in terms of feasibility and adaptation, scalability, replicability, affordability and sustainability in Ethiopia. The participants will compete for an award and international recognition, but above all will get the opportunity for contributing to the enhancement and modernisation of the energy sector in Ethiopia.
The Energy Cooperation fosters commercial application of renewable energy technologies in Ethiopia
The Ethiopian-German Energy Cooperation was established in November 2019 with a joint declaration of intent signed between the Ministry of Water, Irrigation and Energy (MoWIE) of the Federal Democratic Republic of Ethiopia, H.E. Dr. Seleshi Bekele, and the German Federal Ministry for Economic Affairs and Energy (BMWi), H.E. Peter Altmaier in the side-lines of the G20 Compact with Africa (CwA) summit. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and in particular the GIZ Energy Programme in Ethiopia are responsible for the implementation of the project.
ACWA Power, a leading international developer and operator of power generation and water desalination projects, signed two long-term power purchase agreements (PPA) with Ethiopia’s state-owned electricity producer Ethiopian Electric Power (EEP) for two 125 MWac solar photovoltaic (PV) projects at USD 2.526 cents/kWh over 20 years. Implementation Agreements were also signed with the Government of Ethiopia, represented by the Ministry of Finance. The signing ceremony was attended by H.E. Abiy Ahmed Ali, Prime Minister of Ethiopia, H.E. Sami bin Jameel Abdullah, Saudi Ambassador to Ethiopia, H.E. Ato Ahmed Shide, Ethiopia’s Minister of Finance, Dr. Abraham Belay, Chief Executive Officer of EEP, Tilahun Haile, Director of Ethiopia’s Public-Private Partnerships Directorate General (PPP-DG) of the Ministry of Finance, and Paddy Padmanathan, President and Chief Executive Officer of ACWA Power.
ACWA Power won the bid for the two PV plants of 125 MWac each during the first round of Ethiopia’s solar programme organised by the PPP-DG under the new PPP law, and signed a Letter of Intent with the Ministry of Finance and EEP in October 2019.
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.