ADDIS ABABA – The United States has committed at least 1.55 million US dollars in technical development for the Tulu Moye Geothermal Power Plant Project in Ethiopia, its embassy announced today.
The new grant is provided through the U.S. International Development Finance Corporation (DFC), will enable project development and accelerate the schedule to design the 50-megawatt geothermal power plant, said the US embassy in Ethiopia.
Experts say the East African Nation has substantial untapped geothermal resources that can provide significant baseload power.
The project, when completed, is expected to be the first independent power project to generate power at a commercial scale and one of the largest geothermal power plants in Ethiopia.
Ethiopian company TM Geothermal Operations PLC (TMGO) is developing the Tulu Moye project, which is approximately 100 kilometers southeast of Addis Ababa.
The embassy said the DFC’s technical development will provide funding for up to $1.55 million to support detailed design work for the Tulu Moye geothermal plant at an earlier stage in the project development process.
The newly found finance will enable the plant to deliver the first 50 megawatts of electricity to the Ethiopian power grid more quickly.
“After development is completed, DFC will evaluate additional financing for the implementation phase,” the embassy said.
It also said DFC’s technical development builds upon this recent progress and longer-term U.S. government support for Ethiopia’s power sector, including by Power Africa, the U.S. Agency for International Development (USAID), the U.S. Trade and Development Agency, and the U.S. Department of the Treasury.