Scaling Solar

The Ethiopian Electric Utility is seeking proposals for 25 mini grid projects which are being backed by the African Development Bank.

Ethiopia has concluded the tender process for the first round of its Scaling Solar program. The winning bid is the lowest in the continent to date, according to the finance ministry.

Ethiopia is currently trying to set up a methodology for the calculation of electricity tariffs for mini-grid systems. Should the government’s work come to fruition, it can provide much-needed certainty to mini-grid investors.

After joining the Scaling Solar initiative in mid-July, the sub-Saharan country has revealed where its first 30 MW PV plant will be built.

A €38 million loan will be provided by Proparco, the International Finance Corporation and the European Investment Bank. A PV plant in Tauba will sell power for €0.0380/kWh and a second facility in Kahone which will sell electricity for €0.0398.

The 21st Africa Energy Forum, this year in Lisbon, kicked off yesterday and will run until Friday. The meeting offers an insight into the continent’s energy markets.

Developers have until May 29 to register for the first stage of the process to procure four solar projects. With work under way on the second round of the IFC’s Scaling Solar program in the nation, 12 bidders have been identified to compete for the two projects previously offered under the initiative.

The nation’s Ministry of Finance is tendering six large-scale projects in Afar, Somali, Oromia and Tigray. The plants will be developed under a public-private partnership framework and their construction is expected to raise around $795 million.

The Ngonye project proposed by Italian energy giant Enel Group and Zambia’s Industrial Development Corporation, will be financially underpinned by senior loans of up to $10 million from the International Finance Corporation, up to $12 million from IFC-Canada Climate Change Program and up to $11.75 million from the European Investment Bank.

The PV plant will be the nation’s largest once complete, and will be implemented under the International Finance Corporation’s Scaling Solar program.