The African Development Bank (AfDB) Group has approved a financing package of up to USD 110 million for the development of the 300-megawatt Aysha Wind Project in Ethiopia.
The project represents a total investment of approximately USD 508 million.
The AfDB’s financing package comprises up to USD 80 million from its ordinary resources, USD 20 million from the Clean Technology Fund, and USD 10 million from the Sustainable Energy Fund for Africa. The bank said its participation is also expected to help mobilize an additional USD 381.1 million in debt financing from other development finance institutions.
The project includes the construction of a 300-MW wind power plant, a five-kilometre transmission line, and upgrades to the existing Aysha II substation. Under agreements signed by AMEA Power and the Ethiopian government, Ethiopian Electric Power (EEP) will purchase electricity generated by the project under a 25-year Power Purchase Agreement (PPA) and will assume ownership of the transmission line upon its completion.
RELATED POSTS
Once operational, the wind farm is expected to generate approximately 1,189 gigawatt-hours (GWh) of electricity annually. The AfDB stated that the project will help diversify Ethiopia’s electricity generation mix, which currently relies on hydropower for roughly 96 percent of its total generation.
