Ethiopia's renewable energy sector is witnessing a significant transformation with the development of the $620 million Aysha-1 Wind Power Project. The project, being developed by UAE-based AMEA Power, has a planned generation capacity of 300 megawatts and is expected to become the largest wind farm in the Horn of Africa. Located in the Aysha area of Ethiopia's Somali Region, the wind farm is expected to generate approximately 1,400 gigawatt-hours of clean electricity annually.
The project is a result of the growing partnership between Ethiopia and the UAE in the renewable energy sector. The two countries have signed several agreements, including a 25-year Power Purchase Agreement with Ethiopian Electric Power and an Implementation Agreement with the Ministry of Finance. The project is also supported by the African Development Bank and the International Finance Corporation, which have been confirmed as mandated lead arrangers for the project's financing.
Ethiopia has made significant progress in expanding its electricity access, with coverage rising from 44% to 54% in recent years. The country aims to achieve 75% electricity access by 2030. However, the country's renewable energy ambitions require significant investment, estimated at $40 billion over a decade. The Aysha-1 project is a significant step towards achieving this goal, with AMEA Power estimating that it will serve more than four million households and avoid over 690,000 tonnes of carbon emissions each year.
The UAE has emerged as one of the world's most active investors in renewable energy, with a significant increase in its renewable energy capacity over the past decade. The country's renewable energy capacity expanded from 129 MW in 2015 to more than 8.2 GW in 2025. Emirati companies have announced significant projects across Africa, with commitments worth approximately $110 billion between 2019 and 2023.
The partnership between Ethiopia and the UAE is part of a broader model of South-South cooperation driven by capital, technology, and long-term strategic alignment. The UAE's approach to development partnerships is built around long-term value creation, with investments designed to create lasting economic value. According to UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, clean energy is a key sector for UAE-Africa cooperation, with the UAE announcing an AED 4.5 billion initiative targeting 15GW of clean energy capacity across Africa by 2030.
The Aysha-1 project is expected to create over 1,500 direct jobs across the construction and operational phases. The project's developer, AMEA Power, has around three gigawatts of projects developed or under development across Africa. The company's expertise in engineering, procurement, construction, and project management will help bridge financing gaps and accelerate project delivery in Ethiopia.
The effectiveness of the Ethiopia-UAE renewable energy cooperation will depend on how successfully foreign capital, technical expertise, regulatory reforms, and domestic infrastructure development align to create a resilient and sustainable energy system. The project's success will be crucial in unlocking Ethiopia's renewable energy potential and achieving the country's electrification and industrialization objectives.
Key points
- The $620 million Aysha-1 Wind Power Project is expected to become the largest wind farm in the Horn of Africa.
- The project will generate approximately 1,400 gigawatt-hours of clean electricity annually and serve more than four million households.
- The UAE has announced an AED 4.5 billion initiative targeting 15GW of clean energy capacity across Africa by 2030.
