Reykjavik Geothermal and Iceland Drilling Sign Agreement in Ethiopia

An agreement has been signed between Ethiopian Electric Power (EEP) and Corbetti Geothermal Plc, whose investors include Reykjavik Geothermal, Berkeley Energy, and Iceland Drilling. The agreement was announced in a July 30 press release form the US Embassy in Addis Ababa. This is Ethiopia’s first independent power purchase agreement and includes up to 500 megawatts of clean geothermal power from the Corbetti geothermal source.

In addition, negotiations are underway for EEP to sign a Heads of Terms agreement with Reykjavik Geothermal to develop an additional 500 MW in the Tulu Moye and Abaya areas. Combined, these two agreements could generate as much as 1,000 MW in new power for Ethiopia, sufficient power for up to two million households.

The projects, expected to be completed in the coming eight to ten years, are an investment of about USD 4 billion (EUR 3.6 billion), making them the largest independent geothermal power production investment in Africa to date. They are part of President Barack Obama’s Power Africa initiative, aiming to increase substantially electricity access in Sub-Saharan Africa.

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