The Board of Directors of the African Development Bank Group (http://www.AfDB.org/) has approved a $10 million reimbursable grant from the Sustainable Energy Fund for Africa (SEFA) (http://www.AfDB.org/SEFA) to support a geothermal drilling program that will add 50 megawatts of renewable energy to Ethiopia’s power system.
The Tulu Moye Geothermal Operations PLC (TMGO) (https://www.TMGeothermal.com/) project entails developing and operating a 50-megawatt power plant in Ethiopia under a build-own-operate transfer structure. The program provides for the second phase of an additional 100 megawatts. On completion, it will be the first large-scale private sector-driven geothermal development and the first Independent Power Producer in Ethiopia.
TMGO is owned by Meridiam (https://www.Meridiam.com/), a Paris-based multinational corporation, and Reykjavik Geothermal (https://www.RG.is/) of Iceland.
The SEFA grant complements existing facilities to mitigate the high risk associated with drilling activities and help attract commercial debt capital to finance the project. This funding is expected to inspire other private sector-driven geothermal projects in Eastern Africa that have struggled to mobilize capital for drilling.
Maxence Mirabeau, CEO of TMGO, commented: “It is essential to be financially supported during the risky drilling period by a key institution. SEFA is a unique solution to unlock geothermal potential in Africa. Not so many can do it! Thank you to the SEFA/African Development Bank team.”
João Duarte Cunha, SEFA’s Manager, said: “SEFA will play a critical role in supporting geothermal resource assessment and development, which is the riskiest phase of the project, and catalyze investments in the first private power plant in Ethiopia, paving the way for more public-private partnerships in the country’s energy sector.”
SEFA is a multi-donor special fund working to unlock private sector investments that contribute to providing universal access to affordable, reliable, sustainable, and modern energy services for all Africans.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Contacts:
Media Contact:
Olufemi Terry
African Development Bank Group
E-mail: media@afdb.org
Technical contact:
João Duarte Cunha
Manager of the Renewable Energy Funds Division in charge of SEFA
sefa@afdb.org
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
Source: Apo-Opa
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