February 15, 2025

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Aysha II Wind Farm

Ethiopian Electric Power Takes Charge of Aysha II Wind Farm

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The Ethiopian Electric Power (EEP) has decided to finish the Aysha II Wind Farm project independently. Initially funded by the Chinese Export-Import (Exim) Bank, this project is now 83% complete and poised to enhance Ethiopia’s renewable energy capacity.

Located about 20 kilometers from the Djibouti border, the Aysha II Wind Farm sits near an international transmission line. This strategic location makes it ideal for wind energy. The project began nearly nine years ago, with the Chinese Exim Bank covering 85% of the costs. However, only 40% of the promised funds were disbursed due to Ethiopia’s rising external debt risk.

Despite funding challenges, the wind farm started generating electricity two years ago. It currently produces 80 MW of its planned 120 MW capacity. EEP has committed to using its resources to complete the remaining work. The company plans to fund this through a power purchase agreement with Tanzania, which is still pending but expected to yield foreign currency.

The remaining tasks include installing 16 turbines. EEP has already completed the civil work for their foundations. Turbine manufacturing is underway in China, and EEP aims to finish the project by the upcoming fiscal year.

The Aysha II Wind Farm will cost around USD 257.3 million and consist of 48 turbines, each with a capacity of 2.5 MW. Completing this project will generate foreign currency through electricity exports, benefiting Ethiopia’s economy. It will also support local development in the Somali region.

Dongfang Electric Corporation, the Chinese contractor, has experience with various power projects in Ethiopia. Their expertise will be essential as EEP completes the project.

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