Power Purchase Agreement Ethiopia

Tulu Moye geothermal is a promising geothermal field with an estimated capacity of 1GW. Phase 1 of the project aims to develop a 50MW power plant. A total of 500 MW will be developed in four phases. Michael Philipp, President of Reykjavik Geothermia, said: “We are very grateful for the commitment of all senior ministers of the Ethiopian government and the leaders of Ethiopia Electrical Power to conclude this historic agreement. The impact of the US Power Africa programme should not be underestimated. In addition to Power Africa`s direct support to Ethiopian negotiating teams, this initiative has significantly reduced the cost of equity financing for major energy infrastructure projects in Africa, such as Corbetti, by raising the profile of energy investment in Africa for the institutional investment community in the United States and around the world. President Obama launched Power Africa to bring together technical and legal experts, the private sector and governments around the world, working in partnership to increase the number of people in power in sub-Saharan Africa. To learn more about this presidential initiative, visit www.usaid.gov/Powerafrica. ADDIS ABABA, April 2 (Reuters) – Ethiopia has signed an $800 million power purchase agreement with the developers of a 150 MW geothermal plant, the prime minister said on Thursday. Corbetti Geothermal is owned by Berkeley Energy, Iceland Drilling and Reykjavik Geothermal and InfraCo Africa, a subsidiary of the Private Infrastructure Development Group (PIDG). The consortium also signed an agreement to implement the Corbetti geothermal project with the Ethiopian government. “In these difficult times, we continue to work for the development of geothermal energy in Ethiopia and we are pleased to take the next steps to achieve this ambitious project together and in close partnership with EEP and the Ethiopian government,” said Gilles Vaes, CEO of InfraCo Africa.

The project is now being developed in two phases. The first is the drilling of four or six extraction wells. The steam will be collected by pipeline for the operation of a 50 MW plant that will enter service in 2023. The second phase of the project will produce 100 MW. According to Corbetti Geothermia, the Corbetti geothermal project will allow the Ethiopian government to reach 18% of its geothermal production target for 2025, although the total size of the project has been reduced with an expected total capacity of 150 MW. “We are working to harness Ethiopia`s geothermal potential with the first private sector energy agreement,” Obama said. “This will help the government achieve its ambitious goal of significantly increasing access to electricity throughout Ethiopia and open the market to the development of Ethiopia`s other major renewable energy sources.” Addis Ababa, Ethiopia, 30 July 2015 – During President Barack Obama`s visit to Ethiopia this week, Ethiopian Electric Power (EEP) and Corbetti Geothermal Plc signed the first Independent Power Purchase Contract (PPA) for a geothermal flow of up to 500 megawatts (MW) from Corbetti`s geothermal source. Investors in the Corbetti geothermal project include Power Africa partner Reykjavik Geotherm, Power Africa partner Berkeley Energy and Iceland Drilling.