The African Development Bank Group (AfDB) approved a substantial financing package of up to $110 million to back the development of the 300 MW Aysha Wind Project. Located in Ethiopia’s Somali Region, this greenfield initiative will stand as the country’s first wind-based Independent Power Producer (IPP) and, upon completion, its largest wind power plant. Developed, owned, and operated by the UAE-based firm AMEA Power, the overall project carries an estimated cost of $508 million. The AfDB is actively helping to mobilize the remaining $381.1 million debt package from other international development finance institutions. The facility is projected to generate roughly 1,189 Gigawatt-hours of clean electricity annually to power hundreds of thousands of homes, bolstering energy security for a national grid that currently relies on hydropower for about 96% of its energy generation.
This commercial wind development aligns closely with the monumental state-driven progress occurring at the site. In early 2026, Prime Minister Abiy Ahmed officially inaugurated the first phase of the adjacent public-funded Aysha II Wind Power Plant. Constructed by the Chinese firm Dongfang Electric Corporation, the initial phase brought 80 MW of an eventual 120 MW total capacity online, utilizing massive 2.5 MW turbines, the highest capacity per turbine in the country. The remaining phase of the Aysha II project is rapidly nearing completion as the Ethiopian Electric Power (EEP) utility stepped in to bridge funding gaps and keep installation timelines on track. Together, these public and private energy assets near Aysha are designed to push Ethiopia toward its National Electrification Program goal of universal access by 2030, while simultaneously expanding cross-border renewable energy exports to neighboring Djibouti and Kenya.
December 5, 2023
The developer of renewables based in Dubai, AMEA Power LLC, has been tapped for the construction of 300 Megawatt Aysha Wind Power Project in Ethiopia. This will be the first independent power producer project in Ethiopia. AMEA power reached an agreement with the Ministry of finance of Ethiopia on the sidelines of the COP28 climate summit that was recently held in Dubai.
This agreement that was reached between the Ministry of Finance of Ethiopia and AMEA portrays the determination of Ethiopia to attract private investments in its energy sector and also increase the portion of renewable energy in the power mix of Ethiopia as a country in general. The general construction process of the Aysha Wind Power Project is set to generate a total of 2,000 jobs, this is inclusive of both the construction and operational phase.
ALso read: KenGen to Construct 1GW Kenya Wind Firm which is set to be the Largest in Africa
Aysha Wind Power Project Cost, Size, and Capacity
According to a statement that was released by the Ministry of Finance of Ethiopia, the project shall be set up at a total cost of $600 million and is expected to become the largest wind energy project ever established in the Horn of Africa. The Aysha Wind Power Project is set to occupy a total of 18, 000 hectares in the Horn of Africa region in Ethiopia. Once it starts fully operating, the project is expected to generate approximately 1.22TWh of electric power every year.
Currently, Ethiopia possesses a couple of wind power projects which are based in the Orominya and Tigray regions. In addition, the Aysha wind power project is set to become the largest wind project in Ethiopia when fully complete.
Ethiopia is currently opting to renewable energy in order to boost its general electricity coverage which is said to be at 50 per cent of the population in the country as per the year 2020 according to statistics that were released by the World Bank. This indicated that 60 million Ethiopians were being left outside the national grid.
Project Factsheet
Project Name: Aysha Wind Power Project (Aysha I)
Location: Aysha, Somali Regional State, Ethiopia
Project Footprint: 18,000 Hectares
Total Capacity: 300 Megawatts (MW)
Technology Type: Greenfield Onshore Wind Power
Project Model: Independent Power Producer (IPP) — Ethiopia’s first wind-based IPP
Developer / Owner: AMEA Power (via AMEA Power Aysha Wind One PLC)
Off-taker / Buyer: Ethiopian Electric Power (EEP)
Agreement Terms: 25-year Power Purchase Agreement (PPA) & Implementation Agreement
Total Estimated Cost: $508 Million (initially estimated up to $600 Million)
Financing Breakdown
AfDB Approved Package: Up to $110 Million
- AfDB Ordinary Resources (ADB Window): Up to $80 Million
- Clean Technology Fund (CTF): $20 Million
- Sustainable Energy Fund for Africa (SEFA): $10 Million
Mobilized Debt Target: $381.1 Million (being raised from other international development finance institutions)
Infrastructure and Scope
Generation Assets: Design, construction, and long-term maintenance of the 300 MW wind farm.
Grid Integration: Construction of a new 5-kilometer transmission line (ownership transfers to EEP upon completion).
Substation Upgrades: Technical expansions and upgrades to the existing Aysha II substation.
Expected Impact and Output
Annual Energy Output: Generates approximately 1,189 Gigawatt-hours (GWh) of clean electricity per year.
Household Reach: Capable of powering roughly 800,000 homes.
Climate Benefits: Offsets an estimated 1.39 million tons of CO2 emissions over the 25-year life of the agreement.
Employment Generation.
Grid Resilience: Diversifies Ethiopia’s power grid away from its current 96% reliance on hydropower, buffering the energy supply against severe climate droughts.
Project Team
Project Developer and Owner:
AMEA Power (UAE): Acting through its local project vehicle, AMEA Power Aysha Wind One PLC. AMEA Power is the lead private sponsor responsible for the ultimate design, construction, long-term operation, and maintenance of the greenfield 300 MW wind farm.
State and Government Partners:
Ethiopian Electric Power (EEP): The state-owned national electricity utility serving as the sole off-taker (buyer) of the generated power under a 25-year Power Purchase Agreement (PPA). EEP will also assume full ownership of the newly built 5-kilometer transmission line upon its completion.
Ministry of Water and Energy (MoWE): The government body that executed the primary Implementation Agreement with AMEA Power to enable private sector participation in the country’s energy grid.
Financial Mandate and Lead Arrangers
- African Development Bank (AfDB)
- International Finance Corporation (IFC)
Technical Consulting and Impact Assessment
- Mid-Day International (MDI) Consulting Engineers: Contracted to act as the primary local environmental and engineering consultancy, responsible for executing the rigorous Stakeholder Engagement Plan (SEP), Livelihood Restoration Plan (LRP), and Environmental and Social Impact Assessment (ESIA) required to satisfy international development finance standards.
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