Deday Wind Farm Project: Ethiopia’s $288.9M Renewable Energy Initiative

🌍 Deday Wind Farm Project: Ethiopia’s $288.9M Clean Energy Expansion

The Deday Wind Farm Project in Ethiopia is a $288.9 million investment set to generate 134 MW of renewable energy. Discover its location, benefits, and investment potential.

1. Deday Wind Farm

The Deday Wind Farm Project, also known as Dicheto Wind Farm, is a key initiative in Ethiopia’s renewable energy expansion. Located in Elidar Woreda, Afar Region, the project is expected to generate 134 MW of clean energy, reinforcing Ethiopia’s commitment to green power.

With an estimated cost of $288.9 million, the project follows a Public-Private Partnership (PPP) model under a Build-Operate-Transfer (BOT) framework. This guarantees efficient development, foreign investment, and long-term sustainability.

2. Location and Geographic Significance

The Deday Wind Farm is strategically positioned in the Afar region, close to major trade routes.

Key Geographic Features:

📍 Location: Elidar Woreda, Afar Region
📍 Distance from Semera (Afar Capital): 70 km
📍 Near National Highway #1: Major route from Djibouti to Addis Ababa
📍 Elevation: Suitable for wind energy production

Why the Afar Region?

✔ High Wind Speeds: Ideal for continuous energy generation
✔ Close to Djibouti Trade Route: Potential for cross-border electricity supply
✔ Supports Rural Electrification: Expands energy access in remote regions

3. Project Scope and Technical Specifications

Key Features of the Wind Farm

Capacity: 134 MWac
Land Area: 8,500 hectares
Infrastructure: New High Voltage (HV) transmission line
Technology: Advanced wind turbines for efficient energy conversion

The energy generated will connect to Ethiopia’s national grid, improving energy reliability in the Afar region and beyond.

4. Investment and Financial Structure

The total investment cost of $288.9 million includes:
✔ Wind turbine procurement
✔ Infrastructure and site preparation
✔ Transmission and grid connectivity
✔ Operations and maintenance expenses

Potential Funding Sources:

✅ Ethiopian government and public funding
✅ International investors and renewable energy companies
✅ Development banks and foreign financial institutions

5. Procurement and PPP Structure

The project is being developed under a Build-Operate-Transfer (BOT) model, specifically using the Design, Build, Finance, Operate, and Maintain (DBFOM) structure.

Competitive Bidding Process:

Private sector partners will design, finance, build, operate, and maintain the wind farm.
After 20-30 years, the project will be transferred to Ethiopia’s government.
Ethiopian Electric Power (EEP) will oversee procurement through a transparent bidding process.

This approach minimizes public sector risk while ensuring private sector efficiency.

6. Role of Ethiopian Electric Power (EEP)

As the contracting authority, EEP is leading the planning and execution of the Deday Wind Farm Project.

EEP’s Key Responsibilities:

✔ Conducting feasibility studies
✔ Managing procurement and investor selection
✔ Supervising construction and regulatory approvals
✔ Integrating the project into Ethiopia’s national power grid

EEP’s role is crucial in ensuring project success and long-term sustainability.

7. Ethiopia’s Growing Renewable Energy Demand

Ethiopia’s electricity consumption is increasing by 10-15% annually, necessitating renewable energy expansion.

Current Energy Mix:

Hydropower: 90% (vulnerable to droughts)
Wind & Solar: 10% (rapidly growing)

By 2030, Ethiopia aims to generate over 5,200 MW from renewable sources, making wind projects like Deday essential.

8. Economic and Social Impact

The Deday Wind Farm will:
✔ Create thousands of jobs during construction and operation
✔ Support industrial and economic growth in the Afar region
✔ Improve electricity access in rural and urban areas

With stable electricity, businesses, hospitals, and schools in the region will thrive.

9. Environmental Benefits

🌱 Carbon-free energy: Reduces reliance on fossil fuels
⚡ Water conservation: Unlike hydropower, wind energy doesn’t require water
🌍 Supports Ethiopia’s Green Economy Strategy

By transitioning to clean energy, Ethiopia is making a global impact on sustainability.

10. Potential Challenges and Risks

⚠ Land acquisition and community concerns
⚠ Project financing and economic risks
⚠ Regulatory and environmental approvals

Proper government policies, investor engagement, and risk management will address these challenges.

11. Current Status and Project Timeline

📌 Feasibility Study: Ongoing (led by EEP)
📌 Bidding Stage: Expected 2025
📌 Construction Phase: 2026-2028
📌 Operational Launch: By 2030

EEP is finalizing feasibility studies before initiating the bidding process.

12. Foreign Investment and Partnership Opportunities

The Ethiopian government welcomes foreign investors in its renewable energy projects.

Investment Areas:

✔ Wind turbine manufacturing & supply chain
✔ Project financing & technical support
✔ Power transmission and energy storage solutions

Incentives include tax benefits, guaranteed power purchase agreements, and infrastructure support.

13. Ethiopia’s Wind Energy Expansion

Ethiopia is rapidly expanding its wind energy sector, with successful projects like:
🌍 Ashegoda Wind Farm (120 MW)
🌍 Adigala Wind Farm (150 MW)
🌍 Dire Dawa Wind Farm (150 MW)

The Deday Wind Farm strengthens Ethiopia’s position as a renewable energy leader in Africa.