The African Development Bank (AfDB) Group has approved a financing package of up to $110 million (EUR 96.2m) for the 300-MW Aysha wind project in Ethiopia, set to become the largest wind farm in the East African country, the lender said.
The project, with an estimated total cost of $508 million, will be developed, owned and operated by UAE-based AMEA Power in Ethiopia’s Somali Region.
The AfDB’s financing is split between up to $80 million from its ordinary resources, $20 million from the Clean Technology Fund, and $10 million from the Sustainable Energy Fund for Africa.
The bank said it will also help mobilise an additional $381.1 million in debt financing from other development finance institutions.
The project includes the construction of a 300-MW wind farm, a 5-km (3.11 miles) transmission line and upgrades to the existing Aysha II substation.
AMEA Power signed a power purchase agreement (PPA) and other documents nearly two years ago to provide the foundation for the project.
Utility Ethiopian Electric Power will purchase the wind farm’s electricity under a 25-year PPA and will take ownership of the transmission line after it is built, the AfDB said.
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The wind farm is expected to generate around 1,189 GWh of electricity annually, helping diversify Ethiopia’s power system, which currently relies on hydropower for about 96% of its generation, according to the AfDB.
The bank said the project is expected to avoid about 1.39 million tonnes of carbon dioxide emissions over the 25-year contract period.
Construction is also expected to create up to 1,525 direct jobs and around 35,645 indirect jobs, while the operational phase will support 30 permanent positions.
The project supports Ethiopia’s target of achieving universal electricity access by 2030 and aligns with the AfDB’s Mission 300 initiative to expand electricity access across Africa.
(Renewables Now)
