AN investment of US$1,55 million is set to accelerate the development of Ethiopia’s largest independent power project.
The United States (US) International Development Finance Corporation (DFC) has committed technical development to that value for the 50-megawatt (MW) Tulu Moye geothermal power plant.
It is a major boost for Ethiopia, a country with substantial untapped geothermal resources that can provide significant baseload power.
“DFC will help to shape the design of the project by utilising one of our new development tools: technical assistance,” said DFC Chief Executive Officer, Adam Boehler.
“This project will help Ethiopia to tap a critical resource for its economic growth.”
TM Geothermal Operations PLC (TMGO), a local company, is developing the Tulu Moye project, which is some 100 kilometers southeast of Addis Ababa.
After development is completed, DFC would evaluate additional financing for implementation.
DFC’s technical development builds upon long-term US government support for the Ethiopian power sector, including by Power Africa, the US Embassy in Ethiopia, US Trade and Development Agency and US Department of the Treasury.
DFC is America’s development bank.