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Drilling rig at the Tulu Moye geothermal project site, Ethiopia (source: Samuel Getachew / @getachewss)The Clean Technology Fund approved a $ 10 million preferential loan for the development of the 50 MW Tulu Moye geothermal power plant project in Ethiopia.
In a statement before the weekend, the African Development Bank welcomed a decision by the Clean Technology Fund (CTF) Trust Fund Committee, one of two funds within the Climate Investment Funds (CIF), to extend a $ 10 million preferential preferential loan for development of the 50 MW Tulu Moye geothermal power plant project in Ethiopia.
On April 20, 2020, the CTF approved the loan for the project, which is seen as a critical step in the East African country’s push to harness sustainable and resilient energy resources to support its economy and livelihood. With this investment, CTF becomes the first independent progressive geothermal energy producer (IPP) in Ethiopia.
“We appreciate CTF’s participation in this project. This concessional resource will be essential to help the country diversify its energy mix by facilitating the deployment of renewable energy technologies and at the same time supporting Ethiopia in meeting the goals of its National Electrification Plan 2.0, “said Anthony Nyong, Director of Climate Change and Green Growth in the Bank.
The project involves the design, construction, commissioning and operation of a 50 MW geothermal power plant under a Construction, Ownership, Operation and Transfer (BOOT) scheme, and marks the first phase of the Ethiopian government’s plan to build a cumulative generation capacity of 150 MW. by 2024.
The project involves the design, construction, commissioning and operation of a 50 MW geothermal power plant under a Construction, Ownership, Operation and Transfer (BOOT) scheme. The project will include a substation and an 11 km transmission line.
Antony Karembu, Chief Investment Officer and Renewable Energy Specialist at the African Development Bank, noted that as the first independent and progressive geothermal energy producer in Ethiopia, CTF will take advantage of climate finance options to mobilize private sector operators to the project.
The project is expected to reduce greenhouse gas emissions by more than 10 million tons of CO2 equivalent over its lifetime and will create around 600 jobs, Karembu said.
CTF will catalyze the deployment of renewable energy technologies in Ethiopia and support future investments in the sector as risks from the former are reduced and compliance requirements are better understood for all market participants, Leandro Azevedo, CFO Climatics and CIF coordinator in Africa Development Bank, declared.
CTF funds will be drawn from dedicated Private Sector Program III, designed to provide risk-appropriate financing for large-scale, high-impact private sector projects on clean technologies.
Source: African Development Bank
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