Ethiopia has inaugurated the 100-megawatt Asella Wind Farm in the Oromia Region, with Prime Minister Abiy Ahmed saying the €145 million project is expected to recover its cost within two years through power sales and savings on fuel imports. The government described the project as a model of “smart borrowing” and a key step in the country’s push toward a climate-resilient green economy.
Located in Arsi Zone, the wind farm was built by a consortium of Spanish and Danish companies, with UAE-based Dar Al-Handasah Shair and Partners serving as consultant. Officials said the project strengthens Ethiopia’s renewable energy mix and supports the country’s ambition to become a regional clean energy hub.
At the inauguration, Abiy said the project reflects a shift toward infrastructure investments that deliver faster economic returns. He contrasted it with previous large-scale projects that often took years to generate visible financial benefits.
The government said the project was financed through a mix of soft loans and grants, including significant support from Denmark. Officials praised the Danish contribution as an example of development cooperation that reduces debt pressure while helping expand clean power in Africa.
Ethiopian Electric Power CEO Ashebir Balcha said the Asella facility features 29 turbines and brings Ethiopia’s total wind power capacity to 504 megawatts. He said the project adds to a rapid expansion in national generation capacity, which has grown from about 4,000 megawatts to nearly 10,000 megawatts over the past seven years.
Beyond electricity generation, the project includes more than 27 kilometers of internal roads, which officials said will also improve access for local farmers to market their produce. Danish Ambassador to Ethiopia Sune Krogstrup said the project demonstrates the depth of the Ethiopia-Denmark partnership and its focus on delivering clean, reliable energy.
