On July 15, 2026, a financing approval document totaling $110 million was officially signed in the office of the African Development Bank's board of directors. This funding will cross the Red Sea and be directed towards the Elsa region in Somalia, Ethiopia, where a 300 MW wind farm is waiting to set sail. As the country's first independent wind power producer project, Elsa Wind Power will not only break Ethiopia's single energy pattern of 96% dependence on hydropower, but also pave a new path for renewable energy development in Africa through a mixed financing model.

Three hundred megawatts of wind power breaks the water and electricity dilemma

Currently, 96% of Ethiopia's electricity supply relies on hydropower and is highly susceptible to climate fluctuations such as drought. The Elsa wind power project is located in the Elsa region of Somalia, fully invested, constructed, and operated by the United Arab Emirates AMEA Power Company. It has a total installed capacity of 300 megawatts and is supported by the construction of a 5-kilometer transmission line and the upgrading and renovation of Elsa No.2 substation. The project can generate approximately 1189 gigawatt hours of clean electricity annually, significantly enriching the power generation structure, strengthening energy security and grid risk resistance capabilities, and providing support for the nationwide popularization of affordable and reliable electricity.

Hybrid financing model provides replicable templates

The total investment of the project is approximately 508 million US dollars, and the non bank approved financing package of 110 million US dollars consists of three parts: self owned funds of 80 million US dollars, clean technology fund of 20 million US dollars, and African Sustainable Energy Fund of 10 million US dollars. At the same time, non bank led coordination with other multilateral institutions to raise an additional $381.1 million in matching debt funds to fill the gap. This financing plan integrates long-term senior debt, preferential funds, and innovative risk mitigation tools to form a replicable investment template for renewable energy in Africa. Keywords: Wind power new energy news、Domestic new energy latest news

25 year power purchase agreement locks in long-term profits

The project has signed a 25 year long-term power purchase agreement, with Ethiopian National Electric Power Company as the sole purchaser of electricity. After the completion of the transmission line, it will be handed over to the electricity department of the country. The head of non bank energy finance evaluated that this financing is a milestone event in Ethiopia's power industry, providing a mature paradigm for the government, multilateral institutions, and private capital to collaborate in the development of new energy.Editor/Gao Xue