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Reykjavik Geothermal close to PPA deal with Ethiopian Electric Power Corp.

Banks at Omo River in Southern Ethiopia (source: flickr/ CharlesFred, creative commons)
Alexander Richter 18 Sep 2012

Ethiopian news report that Icelandic developer Reykjavik Geothermal is closer to reach a power purchase deal with Ethiopian Electric Power Corp. for its planned 300 MW Corbetti geothermal power project in Southern Ethiopia.

Local news from Ethiopia report that Icelandic geothermal developer Reykjavík Geothermal “is close to reach a deal with the state owned utility company, Ethiopian Electric Power Corporation (EEPCo) for a power purchasing agreement (PPA). EEPCo’s previous negotiations with foreign and domestic companies for a power purchasing agreement (PPA) were not fruitful as asking price quoted by the companies was high.

Reykjavík Geothermal has made an importatnt stride in developing the Corbetti Geothermal Power Project in Southern Ethiopia. The Company has already invested over $4 million for geothermal exploration licenses, geological feasibility surveys, environmental and Social Impact Assessment and Environmental Management Plan. Reykjavík acquired geothermal exploration licenses covering an area of more than 650sqm. An area of 200sqm, in which temperatures reaching up to 350°C have been identified.

The Corbetti Geothermal Power Project will be able to produce 300 MW. Aluto Langano is the only geothermal power plant in Ethiopia generating about 7.3 MW at the time of its installation in the 1990’s. Development of additional geothermal project is planned with generating capacity of 35 to 75 MW of energy at a similar field in Langano.

The Ethiopian Government is set to increase the country’s power generation capacity from geothermal sources. The EEPCO plans to generate up to 1,000MW by 2030 from geothermal energy. Studies indicate that the country has the capacity to generate up to 5,000mw of electricity through its geothermal energy resources.”

Source: 2Merkato