First Geothermal Independent Power Producer in Ethiopia
Source: Babalwa Bungane | ESI-AFRICA
Image credit: Stock
The African Development Bank has welcomed a decision by the Trust Fund Committee of the Clean Technology Fund (CTF), one of two funds within the Climate Investment Funds (CIF), to extend a $10 million concessional senior loan for the development of the 50MW Tulu Moyo Geothermal Power Plant project in Ethiopia.
The project is seen as a critical step to the East African country’s drive to harness sustainable and resilient energy resources to support its economy and livelihoods.
With this investment, CTF becomes the first geothermal Independent Power Producer (IPP) in Ethiopia.
“We welcome the participation of CTF in this project. These concessional resources will be instrumental in helping the country to diversify its energy mix by facilitating the deployment of renewable energy technologies while supporting Ethiopia in meeting the targets under its National Electrification Plan 2.0,” said Anthony Nyong, the director of climate change and green growth at the Bank.
The project entails the design, construction, commissioning and operation of a 50MW geothermal power plant under a Build, Own, Operate and Transfer (BOOT) scheme, and marks the first phase of the Ethiopian government’s plan to build a cumulative generation capacity of 150MW by 2024.
The project will include a sub-station and an 11km transmission line.
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