The Tulu Moye Geothermal Project has been granted a $10 million concessional senior loan from the Clean Technology Fund. This loan will go towards the development of the first phase of the project – a 50 MW geothermal power plant. Ultimately, the project will generate 150 MW towards the baseload electricity needs of the Ethiopian Electricity Grid.
Antony Karembu, Principal Investment Officer and Renewable Energy Specialist at the African Development Bank commented that the project is expected to curb greenhouse gas emissions by over 10 million tonnes CO2 equivalent over its lifetime and is forecasted to create around 600 jobs.
The approval of this loan by the Clean Technology Fund is seen as a critical step to Ethiopia’s drive to harness sustainable and resilient energy resources and diversify its energy mix to support its economy and population. With this investment, the Clean Technology Fund becomes the first progressive geothermal Independent Power Producer (IPP) in Ethiopia.