Ethiopia power plant gets USD 10 million boost

Ethiopia has taken a step towards its green energy target andopened the door to further private sector investment in geothermal energy, with a USD 10 million loan from a fund.The construction of a geothermal power plant in Ethiopia has receiveda boos...

Ethiopia has taken a step towards its green energy target and opened the door to further private sector investment in geothermal energy, with a USD 10 million loan from a fund.

The construction of a geothermal power plant in Ethiopia has received a boost with the news that the Clean Technology Fund (CTF) has approved a USD 10 million concessional senior loan to support the project.

The Tulu Moyo Geothermal Power Plant site will include a substation and a transmission line, and will generate 50 MW, making a major contribution to the Ethiopian government’s plan to have 150 MW in generation by 2024.

With the ability to generate power a major factor in the ability to industrialise economies, and the need to find environmentally friendly solutions to that demand, countries across the continent are increasingly investing in such projects.

A Senegalese solar power scheme

, while in March, South Africa’s Standard Bank launched . Earlier, UK Climate Investments backed a South African and last year Investec made a commitment

.

The loan was confirmed on 20 April by CTF, from its Dedicated Private Sector Program III, making CTF the first independent power producer in Ethiopia to be operating in the geothermal market. CTF which is part of the Climate Investment Funds, of which African Development Bank (AfDB) is a leading agency, and which provides nearly one third of its funding to Africa.

AfDB director of climate change and green growth Anthony Nyong welcomed the development in a statement, saying: “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.”

AFDB principal investment officer and renewable energy specialist Antony Karembu said that the finance will open up private sector involvement in the project, commenting that the finished site “is expected to curb greenhouse gas emissions by over 10 million tons CO2 equivalent over its lifetime, and will create around 600 jobs”.


Source : www.iclg.com

[Author:thasneem]