Denmark has committed €165 million (USD 186 million) to the Assela Wind Farm in Ethiopia, demonstrating the European Union’s Global Gateway initiative that aims to foster sustainable development through renewable energy. The wind farm, boasting a capacity of 100 megawatts (MW), is expected to produce 300 gigawatt-hours (GWh) of electricity annually, enough to power over 140,000 households, equivalent to around 700,000 people.
The project aligns with Ethiopia’s goal to reach middle-income status by 2030 and fulfill the Sustainable Development Goals. Currently, Ethiopia relies heavily on hydropower, which exposes its electricity supply to fluctuations due to varying rainfall patterns. This dependency underscores the need for energy diversification, which the Assela Wind Farm aims to address by adding wind energy to the national grid.
The investment comprises a grant and a loan, with 50% funded through a grant from the Danida Sustainable Infrastructure Finance (DSIF) and the remaining half as a loan from Danske Bank. Ethiopian Electric Power (EEP) owns the project, while Siemens Energy is responsible for the engineering, procurement, and construction of the wind turbines.
Located on a high plateau near Iteya, about 150 km south of Addis Ababa in the Oromia region, the site was selected following a feasibility study that included wind data collection starting in 2016. The first turbine started supplying power to the grid in April 2025, with plans to commission 1-2 turbines each week, aiming for full operational capacity by the end of 2025.
With this wind farm, Ethiopia is working towards becoming a regional energy hub in Eastern Africa and contributing to the decarbonization efforts across the region. This project highlights the effective collaboration between Denmark and Ethiopia, leveraging Denmark’s experience in wind energy to advance sustainable practices in the country.
