The Gad Solar PV Project is a renewable energy initiative spearheaded by Ethiopian Electric Power (EEP) to enhance the country’s electricity generation capacity. The project aims to establish a 125 MWac solar photovoltaic (PV) power plant in the Somali Regional State, covering approximately 236 hectares of land.

Technical and Financial Details

• Installed Capacity: 125 MWac
• Land Area: 236 hectares
• Transmission Infrastructure: The generated electricity will be transmitted through a newly built High Voltage (HV) transmission line connecting to the existing substation in Dire Dawa.
• Estimated Cost: $132.6 million

Procurement and Public-Private Partnership (PPP) Structure

• Procurement Mode: Competitive Bidding
• PPP Model: Build-Operate-Transfer (BOT) under the Design, Build, Finance, Operate, and Maintain (DBFOM) framework.
• Concession Period: 20 years

Project Status

The Gad Solar PV Project has been awarded to ACWA Power, following a competitive bidding process. The Power Purchase Agreement (PPA) with Ethiopian Electric Power (EEP) and the Implementation Agreement (IA) with the Ministry of Finance (MoF) have been successfully signed.

Significance of the Project

This solar PV project is a crucial step in Ethiopia’s efforts to diversify its energy mix, reduce dependency on hydropower, and increase access to clean and sustainable electricity. By utilizing solar energy, the initiative is expected to enhance energy security and support economic growth in the region.