Ethiopia's first commercial wind turbine was erected in December by French firm, Vergnet, on its 120 mw Ashegoda wind farm. Plans to develop the wind farm were announced over three years ago when the government signed a US$303m deal with Vergnet. The deal was largely financed through a loan guaranteed by French export credit agency, Coface, along with financing from the Agence française de développement (November 2008, Economic performance). Electricity production from the farm is expected to reach 30 mw by mid-2011, with the remaining 90 mw to be installed by 2013. As Ethiopia hurries to improve its electricity infrastructure to deliver hydroelectric power to the whole country as well as exporting it to neighbouring East African countries, the Ethiopian Electric Power Corporation (EEPCo) is trying to diversify production sources. In December the government also approved a Chinese loan worth US$94m to finance another wind power project. Production capacity at the wind farms will be small compared with Ethiopia's hydroelectric plants, but if successfully implemented wind power could be an attractive proposition for green investors as the demand for energy in Sub-Saharan Africa's second most populous country grows quickly.

Following the completion of several large power plants in 2010, attention has switched to improving the transmission of electricity. The government has signed a US$200m loan agreement with the African Development Bank (AfDB) to improve energy infrastructure, including high-voltage transmission lines, rural electrification and regional interconnections. Three major hydroelectric projects were completed in 2010, boosting the country's electricity production capacity to 2,000 mw, but poor infrastructure means that power cuts and shortages are still common. Plans to start exporting electricity to Djibouti and Sudan have also been delayed, following technical failures at the Gilgel Gibe II plant at the start of 2010 (February 2010, Economic performance). Repair work was completed at the end of 2010, but the plant is still only producing at around 25% of capacity. Meanwhile, Ethiopia's largest hydroelectricity plant, the 460 mw Tana Beles power plant, has yet to become fully operational despite being inaugurated in May 2010, and poor transmission infrastructure is likely to limit its impact when it does. Overall, the government is targeting electricity production of 8,000 mw by 2015, enough to keep pace with projected annual growth in domestic electricity demand of 32% as well as the start of large-scale electricity exports. There is little doubt that the country has enormous hydroelectric potential (45,000 mw according to the World Bank), but the development of transmission infrastructure will need to keep pace with the building of new dams if the government is to meet its ambitious goals.