The Tulu Moye geothermal project located in the Oromia region in the south-west region of Ethiopia has received a US$ 1.55M boost from the American Development Finance Corporation (DFC) . Provided in form of a grant, the funds will be used in the “technical development” of the project.
Speaking on the provision, Adam Boehler, the DFC’s managing director said that the U.S. government’s development finance institution formed as a result of the merger between Overseas Private Investment Corporation (OPIC) and the Development Credit Authority (DCA) will help shape the design of the clean energy project using one of its new development tools that are technical assistance.
He added that this project will help the East African country harness a resource that is essential for economic growth. The exploitation of the Tulu Moye geothermal project
The implementation of the geothermal resource in question is being carried out by Tulu Moye Geothermal Operations (TMGO) . The latter is a company owned by a consortium formed by Meridiam , a French company specializing in the development, financing, and management of infrastructure projects, and Reykjavík Geothermal , a company specializing in geothermal energy, based in Iceland.
As part of the first phase of this green energy project, TMGO has entrusted the work to Kenya Electricity Generating Company (KenGen) , one of the leading power companies in the East African region. KenGen will drill around ten production wells and two injection wells and also build a collection and injection system for a water-cooled condensing steam power plant with a capacity of 50 MWe.
The electricity produced on the site will be fed into the national grid via a 230 kV substation and a 230 kV transmission line from Koka to Wakena. The project is already subject to a Power Purchase Agreement (PPA) signed between TMGO and Ethiopian Electric Power (EEP) , the state-owned company responsible for electricity.
