China Aims to Back Ethiopian Wind Power Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The Aysha windfarm is a key project in Ethiopia's ambitious plans to become a regional power supplier/exporter in northeast Africa. The proposed site is located in eastern Ethiopia, close to the borders of Djibouti and Somaliland. This location fits the power export strategy, as its can utilize the 230-kilovolt (kV) transmission line that is connected to Djibouti.

The project is set to add 300 megawatts (MW) of clean capacity to the grid energy by using the favorable wind conditions in the eastern area. The project is planned to proceed in two phases, the first of which will be for 120 MW of capacity, followed by the second phase of 180 MW.

The Ethiopian Electric Power Company (EEP) has had a number of significant international investors express interest in financing the project. China, as with many energy and resource projects in Africa, is making a strong run to be the key investor backing the project.

Mihret Debebe, the CEO of EEP, said that the European Investment Bank has also approached EEP with a view to invest in the new windfarm. He said that China's Exim bank is also keen to finance both phases of the project, and has given a strong indication to EEP that project appraisals will start soon for funds to start the project.

It is significant that in November, the Adama 11 wind power project began. The EEP signed a $340 million deal with China's GCOC for the construction of the plant. At the beginning of this month, the $117 million Adama 1 project was inaugurated. This is a 51-MW project and is now supplying power to the grid. Loans from the Chinese government covered 85% of the project cost, with the Ethiopian government taking up the balance.

Hydropower is at the center of Ethiopia's drive to become a regional powerhouse with a target of 11,000 MW coming from the hydro source through 2015, from a base of less than 1,000 MW in 2008. Contracts for five new hydro projects have been signed. In the country's energy mix target for 2015, wind is set for 800 MW and geothermal for 75 MW.

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