Denmark has signed a loan agreement with Ethiopia to provide $201 million in financing for the Assela wind farm project, the daily observer of Ethiopia reported May 28.
The Danish Ministry for Development Cooperation recently approved the loan agreement to finance 54 wind turbines or 100 megawatt wind farms.Danish ambassador to Ethiopia mett tigerson and Ethiopian deputy minister of finance and economic cooperation admausu nibebi signed a loan agreement.Denmark financed the project through its official development cooperation agency, DANIDA.
In a statement after signing the loan agreement, the Ethiopian ministry of financial cooperation said the 100 megawatt wind farm project would be built in the central Ethiopian city of assela.The wind farm, which is expected to take four years to build, will power less than a third of the country's more than 100,000 households.
Currently, Ethiopia generates 4180 megawatts of electricity, of which only 324 megawatts are generated by wind power. Hydropower is the most efficient energy source.Ethiopia's reconstruction dam, now under construction, will be Africa's largest and will add significantly to Ethiopia's hydropower capacity.