Ethiopia has agreed a deal with a Dubai renewables developer AMEA to develop the Horn of Africa’s biggest wind farm, the Aysha-1 Wind Energy Project. Ethiopia inked the Aysha-1 Wind Energy Project agreement on Saturday (August 17) with the United Arab Emirates’ AMEA Power with an aim to ensure sustainable economic development integrated with climate change mitigation.
The signing ceremony, held on Saturday, August 17, 2024, was attended by key dignitaries of Ethiopia and UAE. The Aysha-1 renewable energy project poised to become the largest power project in the Horn of Africa will be constructed in the Somali region of Ethiopia.
Commencement of the Project
The letter-of-award was signed by Ahmed Shide, Ethiopia’s finance minister, and AMEA Power in Dubai during the COP28 climate change summit. Minister of Finance of Ethiopia, Ahmed Shide, Minister of State for Foreign Affairs of the UAE, Sheikh Shakhboot Bin Nahyan Al Nahyan and other senior government officials from Ethiopia and UAE attended the signing ceremony
Moreover, the 300MW Aysha Wind Power Project, which is expected to cost $620m, will be financed, built and operated by AMEA on the basis of a 25-year power purchase agreement with state-owned utility Ethiopian Electric Power.
Size and Capacity of the Aysha-1 Wind Energy Project
AMEA said the 18,000ha project is expected to generate 1,400GWh a year, powering some 4 million households and cutting carbon emissions by 690,000 tonnes.
During the construction and operation phases, the project is expected to create more than 1,500 direct jobs.
Speaking at the signing ceremony, Shide said the project would be “a cornerstone of Ethiopia’s energy policy”.
He said: “This project is not just about generating power, it’s about energising our future through sustainable green development.”
He said the project would catalyse community development, enhance industrial productivity and stimulate technological advances.
Location of the Aysha-1 Wind Energy Project
The scheme will be built in northeast Ethiopia’s Somali province
Hussain Al Nowais, the chair of AMEA, added that Aysha was a milestone for his company.
Additionally, he said the choice of Somali province, which Addis Ababa has earmarked to become a future logistics and industrial hub, would enhance its role in Ethiopia’s industrial development.
Ethiopia’s Electricity Potential
Endowed with a variety of renewable energy sources, Ethiopia has a potential of generating more than 60,000 MW of electricity. Effective utilization of available renewable energy sources would help the country to realize its vision of becoming a renewable energy hub of excellence in East Africa beyond supporting its economic development.
, Moreover, in this regard, the decision of the government to conclude Aysha-1 wind project power purchase and implementation agreement signals its strong political commitment to build a climate-resilient green economy promoting the 2030 Agenda for sustainable development.
Lastly, in addressing the emerging energy demand resulting from an expanding economy and rising population, the government of Ethiopia is making significant efforts in generating renewable energy from diversified energy sources.
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