Ethiopia is set to receive funding under the Clean Investment Funds from the African Development Bank and is asking for support for the phase 2 development of its existing geothermal power plant at Aluto Langano.
The Climate Investment Funds (CIF) “provides a unique financing instrument designed to support low-emissions and climate-resilient development through scaled-up financing channeled through the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and the World Bank Group.”
The fund recently allocated endorsed parts of a $250 million investment plan to promote private and public sector-lead renewable energy and energy efficiency projects and mass-transit urban transport investments.
Ethiopia received funding of $50 million from the CIF under the Scaling Up Renewable Energy Program for Low Income countries (SREP), following meetings in late April/ early May.
Ethiopia’s plan calls for AfDB technical support and investment to implement the Assela wind farm project and Phase II of the Aluto Langano geothermal project. The Bank expects to channel USD 23 million of total SREP financing to Ethiopia.
“The plan will help unlock Ethiopia’s renewable energy potential and share some of the risks. Funds will be applied to technology transfer to reduce the cost of wind energy and to initial drilling and exploration activities of geothermal,” stated Gosaye Mengistie Abayneh, Director of Energy Study and Development in the Ethiopian Ministry of Energy.”