The African Union Commission (AUC) through its Department of Infrastructure & Energy and TM Geothermal Energy PLC (TMGO) signed a GRMF Grant Contract for the Tulu Moye Drilling Programme. The total grant amounts to USD 9,990,279 for co-financing the total cost estimated to USD 26.2 million for the exploration Drilling Programme.
The Agreement was signed by the AUC Commissioner for Infrastructure and Energy, H.E. Dr Amani Abou-Zeid, and the CEO of TMGO Mr. Darrell Boyd. The AUC’s Project Manager for the GRMF, Mr. Atef Marzouk, and the Principal Energy Expert, Mr. Sylvain Degolmal, congratulate TMGO to this achievement:
We would like to congratulate Tulu Moye Geothermal Energy PLC (TMGO) for achieving this milestone. Furthermore, AUC as the project executing agency for GRMF, plays the key role in the harmonization and coordination of geothermal energy exploration and development in East Africa. Therefore, seeing more drilling as the one going on actually in Tulu Moye, Ethiopia is very encouraging. AUC and its partners KfW, BMZ, EU Africa ITF and FCDO (former DFID), would like to reiterate their commitment to fund bankable geothermal projects with respect to GRMF Financial scheme across East Africa region. We are confident that TMGO with this grant will take the project to the next stage closer to power generation.
The Tulu Moye Drilling Programme is located about 140 kilometers southeast of Addis Ababa in the Oromia Regional State, with Lake Koka to the north and Lake Ziway to the south. Three wells are being funded to explore the Gnaro lava field. The Drilling Programme is a continuation of a Surface Study, which received funding within the second GRMF application round.
The Ethiopian Energy Authority has drafted a directive to govern off-grid electricity generation and distribution systems. The directive also enables the Authority to issue licenses for private or public developers of power plants that generate power below 10MW.
The draft directive, which was sent to the Office of the Attorney General for legal review a few weeks ago, outlines procedures for mini-grid licensing and tariff regulations. It sets standards for the design, construction, operation, maintenance and quality of commercial service and technical services.
With the new directive, the Authority can issue two types of licenses — one for generation and one for distribution and sales. The former permits companies to develop power plants and sell the generated electricity with a tariff set by the Authority or power purchase agreements pre-determined by the Authority. Distribution and sales licenses enable the licensee to purchase electricity in bulk and distribute it within a designated area.