The African Development Bank (AfDB) has approved a financing package of up to $110 million for the 300 MW Aysha Wind Project, Ethiopia’s first wind-based Independent Power Producer (IPP), the country’s largest wind power once completed.
The project is estimated to cost $508 million, will receive up to $80 million from the AfDB, $20 million from the Clean Technology Fund, and $10 million from the Sustainable Energy Fund for Africa. The Bank will also help mobilise an additional $381.1 million in debt financing from other development finance institutions.
Developed, owned and operated by AMEA Power, the project includes the construction of a 300 MW wind farm near Aysha in Ethiopia’s Somali Region, along with a 5-kilometre transmission line and upgrades to the existing Aysha II substation. Under a 25-year Power Purchase Agreement, Ethiopian Electric Power will purchase the electricity generated by the facility.
The wind farm is expected to generate around 1,189 gigawatt-hours of clean electricity annually, helping diversify Ethiopia’s electricity mix, which currently relies on 96% hydropower. The project is also expected to improve energy security, strengthen grid resilience against climate-related risks, and support the country’s goal of achieving universal electricity access by 2030.
In addition, the project is expected to prevent around 1.39 million tonnes of carbon dioxide emissions over 25 years and create up to 1,525 construction jobs, along with more than 35,000 indirect jobs across the supply chain.
