ADDIS ABABA – The African Development Bank (AfDB) has welcomed a decision by the Trust Fund Committee of the Clean Technology Fund (CTF), to extend a $10 million concessional senior loan for the development of the 50 MW Tulu Moyo Geothermal Power Plant project in Ethiopia.
CTF, which will be the first geothermal Independent Power Producer in Ethiopia, approved the loan on 20 April 2020.
AfDB says 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.
“We welcome the participation of CTF in this project,” said Anthony Nyong, Director of Climate Change and Green Growth at the Bank.
“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,” He added.
The project entails the design, construction, commissioning and operation of a 50 MW geothermal power plant under a Build, Own, Operate and Transfer (BOOT) scheme.
It marks the first phase of the Ethiopian government’s plan to build a cumulative generation capacity of 150 MW by 2024. The project will include a sub-station and an 11 km transmission line.
Antony Karembu, Renewable Energy Specialist at the AfDB, said CTF, one of two funds within the Climate Investment Funds, will leverage climate finance options in mobilizing private sector operators for the project.
“The project is expected to curb greenhouse gas emissions by over 10 million tons CO2 equivalent over its lifetime, and will create around 600 jobs,” Karembu said.