Two geothermal projects in Ethiopia finalising power purchase agreements
Long time efforts to secure power purchase agreements for the two geothermal projects of Corbetti and Tulu Moye in Ethiopia, with a signature expected to be finalised now.
While the actual signing is expected to take place tomorrow in Addis Ababa, Ethiopia, news report that the state utility Ethiopia Electric Power is to sign two power purchase agreements with private IPPS.
The projects are the Corbetti project and the Tulu Moye project in Oromia, Ethiopia.
Partners to the agreement are Corbetti Geothermal and Reykjavik Geothermal. The signing of the PPA has been delayed several times over the years, but now seems to have been accomplished.
The Corbetti project expects to pursue a development of up to 500 MW with an estimated investment volume of up to $2 billion. The project was initially developed by Reykjavik Geothermal, with now two major investors Berkley Energy and Iceland Drilling. 270 km south – east of Addis Ababa in East Arsi Zone, Shalla Woreda, Corbetti Kebele. RG owns a 28.5 percent stake on Corbetti Geothermal Plc, Berkley Energy 53.5 percent and Iceland Drilling 18 percent. Corbetti Geothermal secured funding from major international financiers, including African Development Bank and European Investment Bank. Many other public and private investors from the US, the UK and other European countries are behind the Corbetti geothermal project. The project is also backed by the US Power Africa Initiative.
The Ethiopian Electric Power will also sign the second agreement for Tulu Moye geothermal power plant project on Tuesday with RG. RG is the first independent power producer company to sign power purchasing agreement with Ethiopian government.
We will report in detail tomorrow (December 19, 2017)
Source: The Reporter Ethiopia