MoU signed for development of solar energy projects in Ethiopia

The Government of Ethiopia and Masdar Clean Energy, a leading developer and operator of utility-scale renewable energy projects, community grid projects, and energy services consultancy have signed a Memorandum of Understanding (MoU) concerning the development of solar energy projects in Ethiopia.

The agreement, which will see the development of solar power projects with a total capacity of 500 megawatts (MW) along with the related grid infrastructure across the East African country, was signed by Mohamed Jameel Al Ramahi, the Chief Executive Officer of Masdar, and Ahmed Shide, Ethiopia’s Minister of Finance in Addis Ababa.

The signing was witnessed by HE Abiy Ahmed Ali, the Prime Minister of the Federal Democratic Republic of Ethiopia, and HE Mohamed Salem Al Rashdi, the United Arab Emirates Ambassador to Ethiopia.

Particularities of the MoU

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The agreement covers the development, financing, design, engineering, procurement, construction, testing, commissioning, insurance, ownership, operation, maintenance, and transfer of photovoltaic (PV) plants, and the infrastructure required to transmit the electricity.

Additional plans call for the signing of power purchase agreements with Ethiopian Electric Power (Amharic: ኢትዮጵያ ኤሌክትሪክ ኃይል), the East African country’s electrical power industry and state-owned electric producer, as well as other agreements later this year, ahead of the start of commercial operations of the proposed power plants in 2022.

The solar energy projects development initiative according to Al Ramahi “will mark a significant step forward for Ethiopia’s efforts to diversify its energy mix and drive economic development.”

“Masdar has been a catalyst for renewable energy and clean-tech innovation in more than 30 countries across the globe, and we look forward to working with the Government of Ethiopia to help deliver universal access to electricity for all its people,” affirmed the Chief Executive Officer of the United Arab Emirates-based Energy Company.