Ethiopia has entered into an agreement with AMEA Power, an international renewable energy company based in the United Arab Emirates, to develop a wind power project valued at $620 million.
The agreement was formalized four days ago in Dubai between officials from Ethiopian Electric Power and AMEA Power.
The project will be located in the Somali region of Ethiopia and will focus on the development, construction, and management of a wind power plant with a capacity of 300 megawatts in Aisha.
This initiative is a significant step forward in Ethiopia’s efforts to harness renewable energy sources to meet its growing electricity demands.
AMEA Power, renowned for its expertise in renewable energy, announced that it has signed both a Power Purchase Agreement (PPA) and an Implementation Agreement with Ethiopian Electric Power to facilitate the development and operation of the Aisha One Wind Power Project.
Upon completion, this $620 million project is expected to generate an average of 1,400 gigawatt hours (GWh) of electricity annually.
The Ethiopian government views the Aisha One Wind Power Project as a model for future renewable energy initiatives.
The Ministry of Finance has highlighted that the project will provide reliable electricity to more than 4 million people and create numerous job opportunities, contributing to the country’s economic growth.
In addition to this major project, Ethiopia continues to expand its electricity export capacity.
Kenya, for instance, purchased 672 million kilowatt hours (kWh) of electricity from Ethiopia between January and June 2024, representing an 88% increase compared to the same period last year.
The current agreement allows Kenya to buy electricity from Ethiopia at a rate of 8.6 US cents per kWh.
However, despite recent domestic tariff increases of 10% every three months, Ethiopia will maintain its current export price to Kenya until 2027, when a new tariff agreement is expected.
Ethiopia currently exports electricity to three East African countries—Sudan, Djibouti, and Kenya—and is conducting feasibility studies to expand its electricity exports to additional neighboring countries.
The electricity sold to Kenya is sufficient to meet the energy needs of approximately 1.4 million people.
In March 2024, during Ethiopian Prime Minister Abiy Ahmed’s state visit to Tanzania, Ethiopia signed an agreement to sell 400 megawatts of electricity to Tanzania.
Ethiopian Electric Power (EEP) has set ambitious revenue targets, aiming to generate 30 billion birr from electricity sales, both domestically and internationally, in the current fiscal year.
Furthermore, Ethiopia plans to export 3,000 gigawatt hours of electricity to neighboring countries, with anticipated earnings of $182 million.
