The Clean Technology Fund has approved a concessional senior loan of $ 10 million 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 of the Trust Fund Committee of the Clean Technology Fund (FCT), one of the two funds of the Climate Investment Funds (CAF), to provide a senior loan of $ 10 million on concessional terms for the development of the 50 MW Tulu Moye geothermal power plant project in Ethiopia.
The CTF approved the loan on April 20, 2020 for the project, which is seen as a crucial step in the East African country’s will to harness sustainable and resilient energy resources to support its economy and livelihoods. subsistence. With this investment, CTF becomes the first progressive geothermal independent power producer (IPP) in Ethiopia.
“We welcome CTF’s participation in this project. This concessional resource will help the country diversify its energy mix by facilitating the deployment of renewable energy technologies while helping Ethiopia achieve the goals of its national electrification plan 2.0 ”, said Anthony Nyong, Director of climate change and green growth at the Bank.
The project includes the design, construction, commissioning and operation of a 50 MW geothermal power plant as part of a BOOT (Build, Own, Operate and Transfer) program, and marks the first phase of the plan of the Ethiopian government aiming to build a cumulative generation capacity of 150 MW. by 2024.
The project includes the design, construction, commissioning and operation of a 50 MW geothermal power plant as part of a BOOT (Build, Own, Operate and Transfer) program. The project will include a substation and an 11 km transmission line.
Antony Karembu, Senior Investment Officer and Renewable Energy Specialist at the African Development Bank, noted that as Ethiopia’s leading independent progressive geothermal power producer, CTF will leverage climate finance options to mobilize operators private sector for the project.
The project is expected to reduce greenhouse gas emissions by more than 10 million tonnes of CO2 equivalent over its lifetime and 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 associated with first entrants are reduced and compliance requirements are better understood by all market players, Leandro Azevedo , Senior Climate Finance Officer and CIF Development Bank Coordinator, said.
CTF funds will come from the Private Sector Program III, designed to provide risk-adapted financing for large-scale, high-impact private sector projects in clean technology.
Source: African development bank