The African Development Bank Group has approved financing of up to $110 million for the development of the 300-megawatt Aysha Wind Project, Ethiopia’s first wind-based Independent Power Producer and what is expected to become the country’s largest wind power plant.
Approved on 15 July 2026, the financing package includes up to $80 million from the African Development Bank, $20 million from the Clean Technology Fund and $10 million from the Sustainable Energy Fund for Africa.
The project is estimated to cost $508 million. The Bank will also support efforts to mobilise an additional $381.1 million in debt financing from other development finance institutions.
Developed, owned and operated by AMEA Power, the project will involve the construction and operation of a 300-megawatt wind farm near Aysha in Ethiopia’s Somali Region. It will also include a five-kilometre transmission line and upgrades to the existing Aysha II substation.
Under a 25-year Power Purchase Agreement, Ethiopian Electric Power will purchase the electricity generated by the project and take ownership of the completed transmission line.
The wind farm is expected to generate approximately 1,189 gigawatt-hours of clean electricity each year. This additional capacity will support Ethiopia’s efforts to expand access to reliable and affordable electricity.
The project will also help diversify Ethiopia’s energy mix, which currently depends on hydropower for around 96 per cent of its electricity generation. Adding wind power is expected to strengthen energy security and reduce the country’s exposure to climate-related changes in water availability.
The African Development Bank described the project as a major milestone for Ethiopia’s power sector. The financing structure combines long-term debt, concessional funding and risk-mitigation tools that could provide a model for future private-sector renewable energy projects in the country.
Over the 25-year agreement period, the Aysha Wind Project is expected to prevent approximately 1.39 million tonnes of carbon dioxide emissions.
The project is also projected to create up to 1,525 direct jobs during construction and 30 permanent operational positions. An estimated 35,645 indirect jobs could be generated through supply chains and wider economic growth supported by the additional electricity capacity.
The Aysha Wind Project supports Ethiopia’s National Electrification Program and its target of achieving universal electricity access by 2030. It also contributes to the country’s climate commitments, net-zero ambitions and the Mission 300 initiative, which aims to provide electricity access to 300 million people across Africa by 2030.
