Emirati renewable energy developer Masdar Clean Energy has signed an agreement with the Ethiopia government to develop solar power projects with a total capacity of 500 megawatts (MW). The deal signed with the Ethiopian Ministry of Finance also includes building related grid infrastructure for solar power plants.
The memorandum of understanding was signed earlier this week by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Ahmed Shide, Ethiopia’s Minister of Finance at the Prime Minister’s office in Addis Ababa, the country’s capital.
Masdar CEO Mohamed Jameel Al Ramahi was quoted by Emirates News Agency saying the deal represents a “significant step forward” for Ethiopia’s efforts to diversify its energy mix.
Through the agreement, Masdar, will design, finance, build and operate photovoltaic (PV) plants, and the infrastructure required to transmit the electricity. The two parties will sign power purchase agreements and other agreements later this year. The renewable energy plants are scheduled to begin commercial operations in 2022.
“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,” Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar was quoted in Emirates News Agency saying.
Masdar enabling Ethiopia’s energy diversification
The Ethiopian government is looking to diversify its energy mix with wind, solar, and geothermal sources to reduce dependence on hydropower, which is vulnerable to fluctuations in rainfall. The country has approved 17 public-private partnerships, eight of which are related to solar energy and renewable energy.
This initiative will be an important step in Ethiopia’s efforts to diversify its power mix and boost economic development
Mohamed Jameel Al Ramahi, Masdar’s chief executive officer.
Masdar is currently working with EDF and Green Africa to develop a project in Morocco that will have solar PV, concentrated solar power and energy storage. The company also completed a 30MW of PV in Egypt, and has ambitions to develop more renewable energy plants on the continent.
Masdar Clean Energy was founded by the Abu Dhabi government in 2006. The UAE based company now has an operational or under-development generating capacity of more than 10GW, and is currently increasing its solar portfolio in markets such as Indonesia, Azerbaijan and Israel.
