Ethiopia’s Office of the Public-Private Partnership (PPP) Directorate General has issued a Request for Qualification (RFQ) for the development of two significant solar PV projects—the GAD II (125 MW) and Weranso (100 MW) plants. Announced on February 9, 2025, this call invites both international and domestic investors to engage in a competitive tender process, marking a crucial step in Ethiopia’s journey towards sustainable energy under its PPP framework. The GAD II Solar PV Plant, located in the Somali Region, and the Weranso Solar PV Plant, situated in the Afar Region, represent a total investment estimated at $309.3 million. These projects are structured as Build-Operate-Transfer (BOT) with a 20-year concession period and are managed by Ethiopian Electric Power (EEP), with sites currently under technical and environmental assessment.
Ethiopia is swiftly becoming a hub for renewable energy investment in Africa. These projects align with the government’s broader strategy to diversify its energy mix, reduce carbon emissions, and achieve universal electrification by 2030. Recent initiatives include the tendering of 20 Solar Mini-Grid Projects in 2023, in partnership with the World Bank, to power rural communities in regions such as Amhara, Oromia, SNNP, Sidama, and Somali. Additionally, large-scale developments like the operational 100 MW Metehara Solar Plant and ongoing PPPs such as the Gad (125 MW) and Dicheto (125 MW) projects are part of this momentum. Community-focused solar plants, such as the recently inaugurated Kara Dus and Kara Korcho solar plants (425 kW total), have already brought electricity to over 5,800 residents, with 25 similar projects planned nationwide.
Investing in Ethiopia’s solar sector offers numerous advantages and presents unparalleled opportunities for investors. The PPP framework ensures transparent tendering processes and long-term partnership models, boosting investor confidence. Solar projects contribute to energy security goals by reducing reliance on hydropower and supporting industrial growth, job creation, and rural development. Furthermore, global partnerships with institutions like the World Bank underscore Ethiopia’s commitment to sustainable development.
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