In a significant milestone for Ethiopia’s energy sector, the Aysha II Wind Farm has been officially inaugurated, marking the first-ever electricity generation project in the Somali Regional State and the wider eastern part of the country. The ceremony, held yesterday, was presided over by Prime Minister Abiy Ahmed and attended by the Presidents of Somalia and Djibouti.
The project, located approximately 670 km east of Addis Ababa and just 20 km from the Djibouti border, is strategically situated near an existing international transmission line. Initially launched with an initial capacity of 80 MW, the wind farm has now been fully completed with a total installed capacity of 120 MW. It is equipped with 48 turbines, each with a 2.5 MW capacity.
The venture, recognized for its high viability in the international energy market, has a complex financial history. The original agreement, signed nearly a decade ago, outlined that 85% of the project’s estimated $257.3 million cost would be covered by the Chinese Exim Bank, with the Ethiopian government providing the remaining 15%. However, according to Moges Mekonnen, Head of Corporate Communication at Ethiopian Electric Power (EEP), only 40% of the committed funds were ultimately disbursed by the financier.
This major funding shortfall was largely attributed to increases in Ethiopia’s external debt risk. Despite this, the Chinese contractor, Dongfang Electric Corporation, continued work on the project for years without full financing. The wind farm actually began generating electricity three years ago.
To bring the project to full completion, EEP’s leadership made the decision to utilize the company’s own resources. “EEP stepped in to finance the completion independently,” the announcement confirmed, highlighting that the initiative is already yielding positive results.
Situated in the Siti Zone of the Somali Region, about 170 km east of Dire Dawa, the Aysha II Wind Farm holds substantial potential for generating foreign currency. It is positioned to export clean energy to neighboring Djibouti, which already imports Ethiopian green power, further strengthening regional energy integration.
