The main objective of the project is to support the economic development of Ethiopia through the development of geothermal, a clean and reliable renewable energy resource therefore enhancing Ethiopian resilience to climate change.
For the Tendaho field, the Government of Ethiopia has set two targets:
-the delineation and initial development of the shallow reservoir allowing in the short term exploitation of the shallow resource at the maximum sustainable capacity, presently estimated to be at least 10 MW;
-the exploration of the deep reservoir by the initial drilling of deep exploration wells. The Government of Ethiopia’s target is the development in the medium terms of at least 100 MW of generation capacity.
The new EUR 8m grant is structured as a Financial Instrument, including a prepayment clause in the case the projects assets would be sold within 10 years, as a success reward. It will be used to fill the financing gap for the exploration of the deep reservoir, following the assessment of the unsuitability of the local rigs.