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Support for Geothermal Development in Tendaho (Ethiopia)

Eastern Africa
Grant Amount
EUR 3,000,000
Total project cost
EUR 39,300,000
Under disbursement
PFG Lead Financier

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 EU-AITF Grants will be used alongside the AFD's loan and will support the drilling of the 6 shallow wells and 2 deep wells in the Tendaho Dubti area, in order to jump start the geothermal industry by de-risking the geothermal exploration phase. They will also contribute to the strengthening of the promoter's capabilities in geothermal related activities.

07/04/2015 - Press release: signature of Financing Agreement between AFD and Ethiopia