Ming Yang Secures Ethiopia License For 8.4 GW RE Project

Chinese renewable energy company Ming Yang Smart Energy has secured an investment license in Ethiopia for a renewable energy and industrial project valued at more than $14 billion, including 8.4 GW of planned wind and solar power capacity. 

According to the Ethiopian Investment Commission (EIC), the company was originally set to invest $10 billion, but the total planned investment has since increased by $4.1 billion. 

Under Phase I, Ming Yang plans to invest $7.47 billion in a large-scale renewable energy project with a total generation capacity of 8.4 GW. The project will include 5.4 GW of wind power and 2.8 GW of solar energy capacity across the South Omo, Afar, and Somali regions. 

Phase II will involve an additional $7.3 billion investment focused on green ammonia production, electric transmission equipment manufacturing, and wind turbine equipment production. 

Currently, hydropower is Ethiopia’s dominant electricity source, but growing concerns about drought-like conditions are prompting the country to diversify its electricity supply with renewables such as solar and wind. 

According to Mordor Intelligence, hydropower accounted for 89.35% of the country’s renewable energy market share in 2025, while solar generation is projected to expand at an 87.60% CAGR through 2031. It forecasts Ethiopia’s renewable energy market size in 2026 at 8.64 GW, growing from 7.15 GW in 2025. It is projected to grow at a 20.90% CAGR from 2026 to 2031, reaching 22.31 GW in capacity. 

Ethiopia is positioning itself as an emerging industrial and investment hub that’s ‘Ready for Business’ as it invites the private sector to invest across various domains while it promises economic reforms and an enabling investment climate, including electronic licensing systems and improved investor services. 

The World Bank-backed $200 million Renewable Energy Guarantees Program (REGREP) de-risks up to 1 GW of private wind and solar projects in Ethiopia, as the country continues to attract concessional and blended finance for energy diversification. 

The license for Ming Yang follows a major investment agreement the company signed with the Ethiopian Investment Commission (EIC) during the 4th Invest in Ethiopia Forum in March 2026. The Chinese company, which develops energy infrastructure for renewable energy, hydrogen, and green ammonia production, committed the largest chunk of total investment in the country among the interested investors. The list also includes Gobez Electric Manufacturing’s $150 million for solar cell manufacturing capacity expansion and Sun King’s $150 million for off-grid solar energy. 

The country is becoming a hot spot for renewable energy, especially solar PV manufacturing. Ethiopian Prime Minister Abiy Ahmed expects the country to earn more than $900 million from solar cell exports next year. Companies like TOYO Solar and Origin Solar Manufacturing are already operating multi-GW-scale solar cell factories in Ethiopia, primarily targeting the US market, while Canadian Solar is working on another manufacturing facility. 

However, both TOYO and Origin are now named in a petition filed by a group of US solar manufacturers seeking a trade investigation, which could lead to tariffs on Ethiopian solar imports into the US. The group claims that these companies are exploiting Ethiopia by routing Chinese wafers and other components into their solar cells and modules to evade US tariffs (see New US Petition Targets Ethiopia Solar Imports).