Denmark and the Danish Energy Agency contributes to sustainable energy expansion in Ethiopia by signing of cooperation agreement on wind energy
The Danish ambassador to Ethiopia Ms. Mette Thygesen and the Ethiopian State Minister Mr. Ato Admasu Nebebe, have signed a strategic cooperation agreement between Denmark and Ethiopia to ensure sustainable development of the power supply in Ethiopia. The Accelerated Wind Power Generation in Ethiopia (AWPGE) programme has the objective of supporting Ethiopia’s target of expanding wind energy from currently 324 MW to approx. 5,200 MW before 2020, a target which is part of Ethiopia’s contribution to the international climate agreement from Paris 2015.
With a population of nearly 100 million people and a yearly economic growth at 10 % Ethiopia is an African country in rapid progress. The Ethiopian economy has however been inhibited by continuously more frequent periods of drought and a weak and fluctuating power supply. Also a major part of the population outside the larger cities does not have access to electricity. The AWPGE programme is to remedy both of these challenges along with maintaining a green power supply based on mainly hydropower but also recently by solar and geothermal energy. Wind power will be able to supplement hydropower in the dry periods that in general are windy.
Investing in wind energy
The Danish Energy Agency (DEA) is to cooperate with Ethiopian authorities on developing a new tendering system for larger scale onshore wind power projects. Based on DEA’s experiences in designing and leading larger tenders on offshore wind, which has ensured record-low prices the last couple of years, DEA is to assist in shaping procedures and framework conditions for a cost-effective extension of wind power in Ethiopia. Simultaneously, it will ensure a larger contribution from the private sector. The planned extension of the wind capacity in Ethiopia demands a mobilization of more than EUR 6bn, an amount demanding input from international investors, banks and developing financial institutes. DEA’s contribution will consist of experts on the area and stationing a Danish energy advisor in the Ethiopian Ministry of Water, Irrigation and Electricity (MOWIE).
Along with DEA, the Danish transmission system operator (TSO) Energinet.dk will cooperate with an Ethiopian TSO, Ethiopian Electric Power (EEP), to incorporate a large amount of wind in the power system. Ethiopia will benefit from Energinet.dk’s many experiences from Denmark, where more than 40 % of the power consumption was from wind powerin 2015. Similar to the Nordic power system, Ethiopia has larger hydropower resources which can be utilized in balancing the Ethiopian power system.
- Accelerated Wind Power Generation in Ethiopia (AWPGE) is to support the expansion of wind energy in Ethiopia as an important supplement to the country’s larger hydropower reserves and ensuring a position in the region as net exporter of renewables to neighbouring countries as Sudan and Kenya
- AWPGE is to mobilise the private sector in the Ethiopian energy supply and supporting the financing of the necessary extension for continuous growth and development in the country and region
- With Danish expertise and experiences on authorities, AWPGE will ensure a fast and cost-effective treatment of larger wind power projects in Ethiopia benefitting Ethiopian power consumers and the Ethiopian economy
Special Advisor Henrik Breum, Danish Energy Agency, tel. +45 3392 7812 or firstname.lastname@example.org