Finance

Ethiopia: Sustainable Energy Fund Africa provides $10 million grant to support Tulu Moye Geothermal Resource Development

Ethiopia: Sustainable Energy Fund Africa provides $10 million grant to support Tulu Moye Geothermal Resource Development
Friday, 09 December 2022 11:46

The Board of Directors of the African Development Bank Group has approved a $10 million reimbursable grant from the Sustainable Energy Fund for Africa (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) 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, a Paris-based multinational corporation, and Reykjavik Geothermal 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. 

1982 agency

On the same topic
Cameroon will issue the first 15-year OTA in CEMAC on February 17, 2026. The Treasury seeks CFA20 billion to test demand beyond the 10-year...
IFC considers up to $8 million in Aruwa Fund II $50 million fund targets Nigerian, Ghanaian SMEs Focus on women-led firms in underserved...
Vista acquires 99.99% of Saham Assurances Niger Company rebranded as Vista Assurances Niger Deal marks entry into Niger’s small insurance...
Beltone acquires Baobab Group for €197.6 million Deal expands footprint into seven sub-Saharan countries Baobab serves 1.6 million...
Most Read
01

Deposits grow 2.7%, supporting lending recovery Average loan sizes small, credit risk persists ...

Togo Microfinance: Deposits and Loans Rise Simultaneously in Q3 2025
02

Oil majors expand offshore exploration from Senegal to Angola Gulf of Guinea accounts for about 1...

Gulf of Guinea regains appeal as a key exploration hub for oil majors
03

Rwanda, partners break ground on $2 billion Kigali Innovation City Smart city targets ...

Rwanda Mobilises Global, Local Finance for $2Bln Innovation City Targeting Africa’s Digital Economy
04

MTN is considering buying back telecom towers it sold years ago, signalling that control of infras...

MTN’s Talks to Buyout IHS: A Strategic Reversal That Could Reshape African Telecoms
05

Ziidi Trader enables NSE share trading via M-Pesa M-Pesa revenue rose 15.2% to 161.1 billio...

Safaricom launches M-Pesa platform for stock trading in Kenya
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.