Around 44 per cent of the population in Ethiopia does not have access to power, and those who do rely mostly on hydropower. Hydropower is green and clean but unstable due to recurrent national drought.
With the Assela Wind Farm, Ethiopia strengthens its position as a frontrunner in Africa’s green transition, seamlessly integrating reliable wind power with its already impressive hydropower projects. This initiative not only enhances energy stability in the light of climate challenges but also showcases how nations in the Global South can transition directly to renewables, completely bypassing fossil fuels in their energy transition.
Power to half a million households
The 100 MW wind turbines will generate between 300 and 330 GWH annually, equivalent to the use of electricity for half a million households.
“The energisation of the wind farm marks a transformative milestone in our efforts to advance sustainable energy solutions in Africa. This project not only brings affordable and reliable power to hundreds of thousands but also showcases the power of equal partnerships tackling climate challenges. It underscores our unwavering commitment to fostering resilient, green energy infrastructures that align with the African countries’ own development goals,” said Annemette Ditlevsen, Vice-President and Co-Head of Public Infrastructure Finance in Impact Fund Denmark.
The energisation of the wind farm marks a transformative milestone in our efforts to advance sustainable energy solutions in Africa. This project not only brings affordable and reliable power to hundreds of thousands but also showcases the power of equal partnerships tackling climate challenges. It underscores our unwavering commitment to fostering resilient, green energy infrastructures that align with the African countries’ own development goals,
The project aligns with COP29’s pledge to mobilise USD 300 billion in climate financing for developing nations and COP30’s emphasis on helping the Global South transition directly to green energy.
Financing challenges
Ethiopia’s wind sector has faced difficulties with obtaining financing due to political risks, regulatory framework and low tariffs in the Ethiopian energy sector. To address these challenges, Impact Fund Denmark’s Public Infrastructure Finance has since 2018 supported the Ethiopian Ministry of Finance and Economic Cooperation’s (MoFEC) Ethiopian Electric Power (EEP) Assela Wind Farm project in central Ethiopia. Impact Fund Denmark’s Public Infrastructure Finance have supported the project with a long-term financing of DKK 1,260.2 million, training of staff and technical assistance.