The African Development Bank Group has approved a financing package of up to $110 million for the Aysha Wind Project in Ethiopia, marking a major milestone in the country’s renewable energy journey. The project will be Ethiopia’s first wind-based Independent Power Producer (IPP) project and is set to become the nation’s largest wind power plant once it is completed.
The total estimated cost of the Aysha Wind Project is around $508 million. Under the approved financing package, the African Development Bank will provide $80 million. The Clean Technology Fund will contribute $20 million, while the Sustainable Energy Fund for Africa will provide an additional $10 million. Besides its direct financial support, the African Development Bank will also serve as the lead arranger to mobilize approximately $381.1 million in additional debt financing from other development finance institutions.
The project will be developed near Aysha in Ethiopia’s Somali Region. It will be built, owned, and operated by AMEA Power, an international renewable energy developer. The development includes the construction of a 300 MW wind power plant, a five-kilometre transmission line, and the expansion of an existing substation to connect the project to the national grid. Ethiopian Electric Power (EEP) will purchase the electricity generated from the project through a 25-year Power Purchase Agreement (PPA), ensuring long-term revenue stability.
The Aysha Wind Project is expected to play an important role in strengthening Ethiopia’s electricity sector. At present, around 96% of the country’s electricity generation comes from hydropower, making the power system highly dependent on rainfall and vulnerable to droughts caused by climate change. By adding a large-scale wind energy project, Ethiopia will diversify its renewable energy mix and improve the reliability and resilience of its electricity supply.
Once operational, the wind farm is expected to generate approximately 1,189 gigawatt-hours (GWh) of clean electricity every year. The renewable energy produced by the project will help reduce dependence on fossil fuels and contribute to lowering greenhouse gas emissions. Over the 25-year agreement period, the project is expected to prevent nearly 1.39 million tonnes of carbon dioxide emissions, supporting Ethiopia’s climate and sustainability goals.
The project is also expected to create substantial economic opportunities. During the construction phase, around 1,525 direct jobs will be generated, while approximately 30 permanent positions will be created for operations and maintenance after commissioning. In addition, more than 35,000 indirect jobs are expected to be supported through increased economic activity and local business development.
The Aysha Wind Project represents a significant investment in Ethiopia’s clean energy future. It supports the country’s target of achieving universal electricity access by 2030 while contributing to Africa’s broader ambition of providing reliable electricity access to 300 million people across the continent by the end of the decade.
