Masdar develops solar energy projects in Ethiopia
The construction sites for the stations will be agreed upon during the development phase.
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The Abu Dhabi Future Energy Company (Masdar) announced its agreement with the government of the Federal Democratic Republic of Ethiopia to develop solar energy projects with a total capacity of 500 megawatts, at multiple sites in Ethiopia.
In the presence of the Prime Minister of Ethiopia, Dr. Abiy Ahmed, and the country's ambassador to Ethiopia, Mohamed Salem Al-Rashdi, the Ethiopian Finance Minister, Ahmed Shid, and the CEO of Masdar, Muhammad Jamil Al-Ramahi, signed the Memorandum of Understanding between the two sides, during a ceremony held in the office of the President Ethiopian ministers in the capital, Addis Ababa.
This agreement covers development, financing, design and engineering, procurement, construction, testing and contracting, insurance, ownership, operation and maintenance, and the transfer of photovoltaic power stations. The sites for the construction of the stations will also be agreed upon during the development phase.
Energy purchase agreements and other related agreements are expected to be signed later this year, to complete the financial closure process, and to start commercial operation in 2022.
Muhammad Jamil Al-Ramahi stressed the importance of this agreement, which would contribute to Ethiopia's efforts to diversify the energy mix and advance economic development efforts.
He said, "(Masdar) is working to stimulate and develop renewable energy projects and innovation in clean technologies in more than 30 countries around the world, and looks forward to working with the government of Ethiopia to contribute to expanding the delivery of electricity supplies to include the entire population."
Renewable energy sources are the main provider of the local electricity network in Ethiopia, at a rate of nearly 100%, and despite this, more than half of the country's population still suffers from lack of access to direct electricity supplies.
The National Electricity Program in Ethiopia aims to achieve universal access to energy by 2025, and to diversify renewable energy sources to reduce dependence on hydropower, which can be affected by drought factors.
• The agreement covers development, financing, construction, operation, and transmission of photovoltaic power stations.
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