- Chinese renewable energy company Ming Yang Smart Energy will invest about US$15 billion in a major renewable energy and green ammonia project in Ethiopia.
- The development will add 8.4 GW of wind and solar capacity, helping diversify Ethiopia’s electricity mix which is currently 96% dependent on hydropower.
- The project is expected to strengthen Ethiopia’s industrialisation strategy and position East Africa as an emerging green hydrogen hub.
China based Ming Yang Smart Energy has secured an investment license from the Ethiopian Investment Commission for a large scale renewable energy, green hydrogen, and green ammonia project in Ethiopia valued at approximately US$14.1 billion to US$15 billion.
The investment approval, granted in May 2026, marks one of the largest foreign direct investments in Ethiopia’s energy sector and highlights growing international interest in East Africa’s green energy potential.
The project will be implemented in two phases. The first phase, valued at about US$7.47 billion, will focus on the development of 8.4 GW of renewable energy capacity. This includes 5.4 GW of wind power and 2.8 GW of solar power projects located across the South Omo, Afar, and Somali regions of Ethiopia.
The second phase, estimated at approximately US$7.3 billion, will support the development of green ammonia production facilities alongside manufacturing plants for wind turbines and power transmission equipment.
The investment is expected to play a major role in diversifying Ethiopia’s energy mix, which remains heavily reliant on hydropower. Hydropower accounted for around 96% of the country’s electricity generation in 2023, creating vulnerability to droughts and climate related disruptions.
The new wind and solar developments are expected to improve energy security while supporting Ethiopia’s long term industrialisation agenda. The project also aligns with the government’s efforts to attract large scale clean energy investments following the recent “Invest in Ethiopia 2026” investment forum.
The development further strengthens Ethiopia’s ambitions to become a regional renewable energy and green hydrogen hub, while accelerating the wider adoption of clean industrial energy solutions across East Africa.
Author: Bryan Groenendaal
