At a joint signing ceremony in Addis Ababa, Ethiopia, Tulu Moye Geothermal signed a 520 MW Power Purchase Agreement and Implementation Agreement (PPA/IA) with Ethiopian Electric Power (EEP) and the Government of Ethiopia (GoE) for the Tulu Moye area while at the same time Corbetti Geothermal signed a similar 520 MW PPA and IA with EEP and the GoE for the Corbetti area. The projects will be developed in phases, and each has a total budgeted cost of approximately $2.2 Billion. When fully developed, each project individually would be the largest independent power project (IPP) investment in Africa.
“Reykjavik Geothermal working with the Government of Ethiopia and Ethiopia Electric Power, has led the development of the geothermal power sector in Ethiopia for the past six years,” said Gudmundur Thoroddsson, CEO of Reykjavik Geothermal. “As the first Independent Power Producer in Ethiopia, RG has helped create the legal, financial and technical framework for the historic projects that have been signed today. We look forward to working with Meridiam SAS to develop the 500 MW Tulu Moye geothermal project and to working with all of our colleagues in Ethiopia to develop the geothermal industry in this great country.”
Corbetti and Tulu Moye each represent half of the framework agreement signed by RG and Ethiopian Electric Power Corporation (EEP’s predecessor) in 2013 for the development of 1,000 MW of base load power for the grid from geothermal sources.
Once ratified by parliament, the agreements will enable Corbetti to commence drilling the first production wells in 2018. It also lays the foundations for subsequent geothermal projects. Collectively, Tulu Moye and Corbetti will transform the provision of clean, reliable power in Ethiopia and catalyze further investment in Ethiopia which is key for unlocking essential infrastructure needed to further boost the country’s economy.
Photo: Natural geothermal steam (fumarole) rises from the ground in a ravine within the Corbetti Caldera.