100MW Ethiopia Wind Farm Reaches Financial Close

  • The Ethiopian Parliament has rubber stamped a loan agreement with the Danish Government thorugh Danske Bank , for the financing of the 100 MW Assela Wind Farm Project.
  • This paves the way for the construction phase of the project.
  • Twenty nine wind turbines supplied by Siemens Gamesa with a total capacity of 100MW is expected to produce 330,000KWh annually.

“I am pleased to see the agreement to develop the Assela I Wind Farm, which will diversify the Ethiopian renewable energy mix, has been passed by the Parliament. I am grateful to the Danish government’s generosity to provide grant and concessional finance. As a capacity development, Ethiopia will also learn and benefit immensely from Danish wind energy companies in terms of generation and operation of wind energy.” – Dr. Seleshi Bekele, Minister of Water, Irrigation and Energy, MOWIE.

The signing of the loan agreement for construction of the Assela Wind Farm Project affirms the strong Ethiopian-Danish cooperation in the energy sector. Since 2017, Ethiopia has cooperated with the Danish government on the development of the Ethiopian capacity in green energy, especially in relation to expansion within wind energy and how to integrate flexible renewable energy into the electricity grid system. The cooperation between Ethiopia and Denmark is part of the Danish Government’s goal to create partnerships in obtaining access to energy and sustainable economic growth, in line with SDG 7.

“We are very pleased to see this project develop, and that we are now moving towards the construction phase. Access to sustainable and reliable energy is crucial to Ethiopia’s continued development. Denmark is very happy to be able to support Ethiopia’s ambitions to develop a climate-resilient green economy.” -Ms. Karin Poulsen, Danish Ambassador to Ethiopia.

The contracting amount for the Assela Wind Farm Project amounts to approx. 146 million EUR, which Danida Sustainable Infrastructure Finance (DSIF) is funding through a concessional finance model consisting of a grant and a loan module. The Danish contribution accounts for approx. 95 million EUR, and covers the cash grant, interest subsidy and loan guarantee. The Assela Wind Farm will be located about 150Km south of the capital, near Iteya town in Oromia Regional State, and will be constructed by Siemens Gamesa Renewable Energy.

Author: Bryan Groenendaal

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