The African Development Bank has applauded a decision by the Trust Fund Committee of the Clean Technology Fund, one of two funds within the Climate Investment Funds, to extend a 10 million USD concessional senior loan for the development of the 50 MW Tulu Moyo Geothermal Power Plant project in Ethiopia, according to Africa Development Bank.
The Clean Technology Fund approved the loan for the project, which 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, Own, Operate and Transfer scheme, and create around 600 jobs, Karembu said.
progressive geothermal Independent Power marks the first phase of the Ethiopian government’s plans to build a cumulative Clean Technology Fund that will catalyze the deployment of renewable energy Producers in Ethiopia.
We welcome the participation of the Clean Technology Fund in this project. This concessional resource 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, Director of Climate Change and Green Growth at the Bank.
Antony Karembu, Principal Investment Officer and Renewable Energy Specialist at the African Development Bank noted that as the first progressive geothermal Independent Power Producer in Ethiopia, Clean Technology Fund will leverage climate finance options in mobilizing the private sector operators for the project.
The project entails the design, construction, commissioning, and operation of a 50 MW geothermal power plant under a Build, generation capacity of 150 MW by 2024.
The project will include a sub-station and an 11 km transmission line.
The project is expected to curb greenhouse gas emissions by over 10 million tonnes CO2 equivalent over its lifetime, and will technologies in Ethiopia and will underpin future investments into the sector as first-mover risks are reduced and compliance requirements are better understood to all market participants, Leandro Azevedo, Principal Climate Finance Officer and CIF coordinator at the African Development Bank, stated.
The Clean Technology Fund funds will be drawn from the dedicated private-sector program III designed to provide risk-appropriate financing for high-impact, large-scale private sector projects in clean technologies.