An imperative to diversify the electricity mix
The announcement comes as Ethiopia seeks to diversify a power system dominated 96% by hydropower, according to International Energy Agency data. Wind accounted for only 3.3% in 2023. The recent commissioning of the Grand Ethiopian Renaissance Dam (GERD), with a capacity of more than 5,000 MW, has boosted supply but heightens vulnerability to hydrological risks. In this context, authorities are looking to attract more private investment. At the “Invest in Ethiopia 2026” forum, more than $13 billion in agreements were signed in energy and industry. This wind ambition unfolds against a contrasting global backdrop: in Hong Kong, the only commercial wind turbine has just been decommissioned after 20 years.
A two-stage financial package
The project is structured in two phases. The first, costed at $7.47 billion, covers the construction of wind and solar capacities. A second tranche of $7.3 billion will fund the production of green ammonia as well as the manufacturing of electrical transmission equipment and wind turbines. Ming Yang thus plans to produce turbines locally, a segment where offshore wind turbine prices have jumped 40-45% in Europe, according to recent analyses.
At the “Invest in Ethiopia 2026” forum, Ethiopian authorities announced the signing of more than $13 billion in investment agreements across several sectors, including energy, industry and special economic zones. These projects also involve energy equipment manufacturing and clean technologies, illustrating Addis Ababa’s desire to combine energy development with green industrialization.
By integrating green ammonia production and local equipment manufacturing, Ming Yang aligns with this strategy. The Chinese group thus strengthens its presence in Africa, where it aims to become a major clean energy player.