06.04.2017
Suntrace and GAUFF Engineering Power advise IFC in photovoltaic projects in Ethiopia
International Finance Corporation (IFC) commissioned the joint-venture Suntrace and GAUFF Engineering Power International for the technical support for the development and tender of photovoltaics (PV) projects for Ethiopia with up to 200 MW power as part of the "Scaling Solar" programme.
In doing so, Ethiopia has made a crucial step towards diversifying the energy supply with renewable energies. Right now technologies such as solar energy and wind power only generate a small portion of the energy supply. Some 70% of the electric energy are currently generated by hydro power, while overall Ethiopia is still lacking some 500 MW of electrical energy.
Within the framework of the Growth and Transformation Plan II, Ethiopian Electric Power (EEP) commissioned the International Finance Corporation (IFC, World Bank Group) as transaction partner for the development of PV power plants with a total output of 500 MW. IFC is part of the World Bank Group and acts as international bank for development focussing on the support of private companies. During the first stage of the project PV plants with a total output of up to 200 MV will be built with the support of Suntrace and GAUFF Engineering Power.
IFC will accompany EEP when awarding the projects to Independent Power Producer (IPP) and, also in Ethiopia, relies on its "Scaling Solar" programme, which has already been successfully introduced in several African countries. The goal of this programme is to allow for a a quick launch of competitive large-scale PV power plants in sub-Saharan Africa. As contractual basis IFC provides a number of standardised documents (including a Power Purchase Agreement and a Government Support Agreement) which ensure an equal distribution of opportunities and risks for all major stakeholders (i.e. the government, the buyer / grid operator, project sponsors and lenders).
In this pioneering project, the consortium Suntrace / GAUFF Engineering Power International takes over the technical advice for the development and tender of the Solar-IPP transactions, together with local partners and IFC. Our services include basic site analyses, technical, economic, ecological, and social evaluation of the PV power plants as well as accompanying the IPP awarding processes.
The project started in January 2017 in the Ethiopian capital Addis Abeba. The tendering phase for the PV plants will start in mid 2017.
