The Tulu Moye geothermal power plant project has received a loan worth US $10m from the Clean Technology Fund (CTF), one of two within the Climate Investment Funds (CIF), for the ongoing construction.
This was announced on a press release by the African Development Bank (AfDB) which serves as an implementing agency of the CIF. The AfDB thanked and welcomed the decision of the CTF trust fund committee to support the Tulu Moye geothermal power plant project which is important to the East African country’s energy diversity and resilience.
The Tulu Moye geothermal power plant project
The first phase construction on this project began with the drilling of the geothermal heat wells by the Kenya Electricity Generating Company (KenGen), one of the leading power companies in the East African region. The latter was awarded the contract to drill around ten production wells and two injection wells, in October last year.
The agreement also entails the building of a collection and injection system for a water-cooled condensing steam power plant with a capacity of 50 MW. A substation and an 11 km transmission line will also be constructed as a part of the project, which is to be delivered by 2023.
Electricity generated from this facility will be sold to the state-owned Ethiopian Electric Power (EEP) through a power purchase agreement (PPA) signed between the latter and Tulu Moye Geothermal Operations (TMGO) PLC.
Tulu Moye (TM) Geothermal Operations (TMGO) PLC was established in 2017 and it is owned by a consortium consisting of Meridiam, a French company specializing in the development, financing, and management of infrastructure projects, and Iceland’s Reykjavík Geothermal.