Ethiopia advances restart of two geothermal projects

Ethiopia is advancing negotiations to restart the stalled Tulu Moye and Corbetti geothermal projects, with discussions focused on resolving contractual disputes and creating a path back to drilling.

Local media, citing reporting by Wazema Radio, says the Ethiopian government and Tulu Moye Geothermal Operations have agreed to halt ongoing litigation and are now working on revisions to the project’s power purchase agreement and investment terms. Representatives of Ethiopian Electric Power (EEP) and the Ministries of Finance, Mines and Justice are involved in the negotiations. A Letter of Intent is reportedly expected as part of the process towards restarting the project.

Tulu Moye and Corbetti move towards restart

The development follows negotiations reported earlier this year on resuming work at the Tulu Moye project in the Oromia Region. The project is currently planned for 150 MW, comprising an initial 50 MW phase followed by another 100 MW. Tulu Moye is backed by Meridiam and Reykjavik Geothermal.

Negotiations are also underway for the Corbetti geothermal project. According to the latest Ethiopian reporting, Corbetti is discussing revised electricity tariff and project terms with EEP and the Ministry of Finance, with the goal of restarting exploration drilling.

The talks follow the entry of Taranis Operations, a subsidiary of the Perenco Group, into the project earlier this year. In June 2026, Taranis signed a convertible loan agreement as part of a prospective investment of up to USD 27 million in Corbetti. The project is also planned for 150 MW, with a 50 MW first phase followed by a further 100 MW.

The latest settlement and tariff negotiations have not yet been publicly confirmed by the developers or Ethiopian authorities. If concluded, they would mark another step towards restarting two geothermal developments that have faced lengthy delays in Ethiopia’s Rift Valley.

Source: Ethiopia Today