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Assela Wind Farm project in Ethiopia enters construction phase

Assela Wind Farm project located about 150Km south of Addis Ababa, near Iteya town in Oromia Regional State, Ethiopia, has now entered the construction phase following the approval for the loan agreement signed by the East African country Ministry of Finance and Danske Bank for financing for the 100 megawatts project.

The loan of US$ 136.5M, to be repaid in 20 years, including a five-year grace period, was approved one hundred percent by the House of Peoples’ Representatives according to the Ethiopian parliament.

The Danske Bank loan is supported by the Danish government through the ministry of foreign affairs’ development assistance Danida Sustainable Infrastructure Finance (DSIF).

The Project overview

Also Read: US$131.4 million invested into 100MW Assela Wind project, Ethiopia.

The project involves the installation of 29 turbines with each turbine having the capacity to produce 3.45MW, the construction of access roads, and a substation as well as the installation of transformers and generators.  Upon completion, the facility is expected to generate about 330,000KWh annually and supply sustainable power to over three million people.

An agreement signed between the Ethiopian Electric Power (EEP), Ethiopian electrical power industry and state-owned electric producer, and Siemens Gamesa Renewable Energy stipulates that the Danish subsidiary of Siemens Gamesa will have control of 60% of the development of the project, while Simens Gamesa-Spain (the parent company) will have the remaining 40% control.

The two subsidiaries of the company are also expected to operate and maintain the Assela wind farm over a period of 5 years.

Electric access in the republic of Ethiopia

Electric access in Ethiopia is low, with approximately 60 million – over half of its population left without access to electricity.

As per the National Electrification Plan, the political objective is to provide access to electricity for the entire population, 65% from the grid, and 35% from solar off-grid technologies.

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