Enel Green Power, a subsidiary of giant Italian utility Enel, announced on 23 October that it has been awarded the 100MW Metehara solar PV project in Ethiopia through a consortium with local partner Orchid Business Group. The project, which was tendered by national utility Ethiopian Electric Power (EEP), is expected to cost $120m to develop. Five consortia were preselected – led by Enel, Italy’s Building Energy, Paris based Meridiam-Solaredirect consortium, Fotowatio Renewable Ventures, and China’s CCE Oasis Technology Corporation – from 65 companies which expressed an interest.
Metehara is expected to be a lesson for future independent power producers (IPPs) in the country. A custom power purchase agreement was drawn up, as well as government support and other offtaker agreements, in a country unaccustomed to dealing with market-led energy sector development.
A substantial pipeline of projects is being tendered in the country, with Scaling Solar beginning prequalification for two 125MW solar PV projects, alongside wind and hydro projects being tendered as IPPs by EEP. The projects, in addition to the commissioning of a transmission interconnection with Kenya expected online next year, will help Ethiopia diversify its hydroelectric heavy energy mix, although the International Energy Agency’s Renewables 2017 report still expects that of the 5.7GW renewable capacity the country is expected to add, 86% will be from hydro. There have also been rumours in the local media that progress will soon be made on the 500MW Corbetti geothermal project.
