Developing Africa’s huge onshore wind energy potential can boost its transition to affordable and reliable clean energy. For the first time ever, wind and solar made up the majority of the world’s new power generation in 2019. A mix of wind and solar energy is not only good for the climate but will help diversify the continent’s energy mix and improve energy security.
A new study for IFC, a member of the World Bank Group, shows that continental Africa possesses a stunning onshore wind potential of almost 180,000 Terawatt hours (TWh) per annum, enough to satisfy the entire continent’s electricity demands 250 times over.
The analysis, carried out by Everoze, finds that 27 countries in Africa have enough wind potential on their own to satisfy the entire continental electricity demand—estimated at 700 TWh annually. Algeria has the highest resource with a total potential of 7,700 Gigawatts (GW), equivalent to over 11 times current global installed wind capacity. Fifteen other countries have technical wind potentials over 1,000 GW including Mauritania, Mali, Egypt, Namibia, South Africa, Ethiopia and Kenya.
The Ethiopian parliament last week approved the loan agreement between the finance ministry and Danish lender Danske Bank A/S (CPH:DANSKE) aimed at financing the 100-MW Assela wind farm project. The loan of EUR 117.3 million (USD 136.5m), to be repaid in 20 years, including a five-year grace, was approved unanimously by the House of Peoples’ Representatives, the parliament said on its website.
The Danske Bank loan is supported by the Danish government through the ministry of foreign affairs’ development assistance Danida. With funds in hand, the Assela project is now moving towards the construction phase. The wind farm will be located some 150 kilometres (93.2 miles) south of Addis Ababa, near the town of Iteya in the Oromia regional state. Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) will be responsible for the build.
A loan agreement amounting €117.3 million has been signed between Ethiopia and the Danske Bank A/S for the 100MW Assela wind farm project. The agreement was sign by Ahmed Shide, Ethiopia’s Minister of Finance and Mr. Jelsper B. Petterson and Olaf S. Mark schet, Director and Associate Director of Danske Bank A/S, respectively.
The total contracting amount of the project is €146 million, of which €117 million loan will be covered by the Danske Bank A/S, according to a statement issued by the Ministry of Finance. The Danida Business Fund (DBF), administered by the Investment Fund for Development Countries on behalf of the Government of Denmark, committed to contribute €28.70 million cash grant for the project.