Discover the Dicheto Solar PV Project – Phase 1, Ethiopia’s groundbreaking 125 MW solar power initiative. Learn about its cost, impact, and future benefits.

Ethiopia is making remarkable strides in renewable energy with the Dicheto Solar PV Project – Phase 1. This ambitious project aims to generate 125 MWac of solar power, reinforcing the country’s commitment to sustainable energy and economic growth. With a total investment of $132.6 million, the project will enhance electricity generation, boost employment, and support Ethiopia’s green energy transition.

Overview of the Dicheto Solar PV Project – Phase 1

Project Name	Dicheto Solar PV Project – Phase 1
Contracting Authority	Ethiopian Electric Power (EEP)
Capacity	125 MWac
Land Area	236 hectares
Total Investment	$132.6 million
Procurement Mode	Competitive Bidding
PPP Model	BOT (Build-Operate-Transfer) – DBFOM
Operational Duration	20 years
Location	Dicheto Town, Afar Regional State
Project Status	Awarded to ACWA Power (PPA & IA Signed)

Project Significance: Why the Dicheto Solar PV Project Matters

1. Boosting Ethiopia’s Renewable Energy Capacity

The Dicheto Solar PV Project is a crucial step in Ethiopia’s renewable energy roadmap. By generating 125 MWac, it will contribute to the country’s goal of increasing energy access and reducing reliance on fossil fuels.

2. Enhancing Energy Transmission Infrastructure

A new high-voltage transmission line will be built, connecting the solar power plant to the existing substation, which is just 1.8 km away. This ensures efficient energy distribution and reduces transmission losses.

3. Economic and Environmental Benefits

• Job Creation: The project will generate employment opportunities during both construction and operational phases.
• Carbon Emission Reduction: By utilizing solar energy, the project will significantly reduce CO₂ emissions and promote eco-friendly development.
• Energy Security: Enhancing the power supply will help industries, businesses, and households access stable and reliable electricity.

The Role of Public-Private Partnership (PPP)

The project follows a Build-Operate-Transfer (BOT) model, where the private sector (ACWA Power) is responsible for:
✅ Designing, Building, Financing, Operating, and Maintaining (DBFOM) the power plant.
✅ Transferring the project to the Ethiopian government after a 20-year operational period.

This PPP structure ensures efficient project execution, attracting foreign investment and technology transfer.

Current Status & Future Prospects

The project has been awarded to ACWA Power, and the Power Purchase Agreement (PPA) and Implementation Agreement (IA) have been signed with Ethiopian Electric Power (EEP) and the Ministry of Finance (MoF), respectively.

In the coming years, the Dicheto Solar PV Project will:
🔹 Increase Ethiopia’s renewable energy share
🔹 Support economic growth through industrial electrification
🔹 Contribute to Ethiopia’s Climate Resilience and Green Economy Strategy

FAQs about the Dicheto Solar PV Project

1. What is the total capacity of the Dicheto Solar PV Project?

The project will generate 125 MWac of solar power.

2. Who is developing the project?

The project has been awarded to ACWA Power, a leading developer of renewable energy projects.

3. What is the total investment for the project?

The estimated investment is $132.6 million.

4. How will the electricity be transmitted?

A new high-voltage transmission line will connect the solar farm to the existing substation, located 1.8 km away.

5. What is the duration of the partnership?

The Build-Operate-Transfer (BOT) model ensures that the private partner operates the plant for 20 years before handing it over to the Ethiopian government.

6. How does the project benefit Ethiopia?

The project will:

• Expand clean energy capacity
• Reduce carbon emissions
• Create jobs
• Strengthen energy security

The Dicheto Solar PV Project – Phase 1 is a game-changer for Ethiopia’s renewable energy sector. With 125 MWac capacity, a $132.6 million investment, and a strong PPP model, this initiative will significantly enhance energy access, create employment, and support Ethiopia’s sustainability goals.