Ethiopia’s Finance Ministry and AMEA POWER, a Dubai-based developer, signed an agreement to build the Horn of Africa’s largest onshore wind farm with a capacity to generate 300 megawatts of electricity.
The Aysha Wind Power Project construction deal was signed between the Ministry of Finance and AMEA Power on Sunday.
“AMEA Power’s extensive experience in developing large-scale renewable energy projects makes it a great partner for this venture,” the ministry said.
The Ethiopian Investment Holdings (EIH), a government investment arm, also signed the deal as a co-investor in the project, which will boost the nation’s renewable energy sector.
Ethiopia’s installed capacity stands at 5,249 MW with more than 90 percent of its energy source coming from hydropower. Wind power is the second-largest source of electricity, contributing 404 MW to the national grid.
Authorities say the latest deal with AMEA Power “demonstrates the government’s determination to increase” the share of renewable energy in Ethiopia’s power mix and attract private investments to the sector.
The $600 million US Dollars project will be built on 18,000 acres in Ethiopia’s Somali Region.
“Aysha Wind Power Project will be implemented with strong government-to-government support by AMEA Power, a prominent private sector player,” said Finance Minister Ahmed Shide after signing the deal.
Expected to produce approximately 1.22 Tera-Wh of electricity annually, the Aysha Wind Power Project significantly contributes to Ethiopia’s growing power generation capacity.
It is also anticipated to create around 2,000 jobs during the construction and operational phases, providing a boost to the local economy.
“This project represents a major stride in our journey towards increasing clean energy production, providing sustainable electricity to our people, and driving economic growth and job creation in the region,” Abebe Gebrehiwot of MinFin’s Public Private Partnership Directorate said.
Editores Note: The story was updated to include additional information from EIHs on Monday, Dec 4, 2023.