Siemens Gamesa has signed up for its first wind power project in Ethiopia with a commitment for 29 wind turbines.
The company will supply the SG3.4-132 turbines to state-owned Ethiopian Electric Power (EEP) for the Assela project. Siemens Gamesa should commission the 100 MW wind farm by spring 2023, curbing more than 260,000 tonnes per year of CO2 emissions. It will generate around 300,000 MWh per year.
Siemens Gamesa will provide engineering, procurement and turnkey construction.
“Siemens Gamesa is intent on expanding its leadership across Africa, and in turn help a growing transition to green energy across the continent. So, we are extremely pleased to begin work in Ethiopia and look forward to collaborating with both EEP and the country to continue to promote their drive to install more renewables and meet transformational energy targets,” said the company’s CEO for Onshore Southern Europe and Africa Roberto Sabalza.
The Assela wind farm will be 150 km south of Addis Ababa, between the towns of Adama and Assela.
The Danish Ministry of Foreign Affairs will finance the Assela wind project via Danida Business Finance (DBF), with a loan agreement signed by the Ethiopian Ministry of Finance and Economic Co-operation with Danske Bank.
In September 2020, Danida said the total cost of the Assela wind project was 146 million euros ($179mn). Denmark agreed to contribute around 95mn euros ($116mn) in concessional financing.
Ethiopia has set a target of supplying all of its domestic electricity needs through renewable energy by 2030. It aims for universal energy access by 2025, with off-grid plans covering 35% of the population.
The World Bank has said that, as of 2018, 45% of Ethiopia’s people have access to electricity.
The country has installed wind capacity of 324 MW. It has potential of 10 GW, according to the African Development Bank (AfDB).
Siemens Gamesa cited Wood Mackenzie as saying 2 GW of wind power would be installed in the country by 2029.