Ethiopia invests in geothermal energy

Ethiopia is expanding its use of geothermal energy to reduce reliance on hydropower, which currently dominates its electricity supply. This move is part of a broader strategy to diversify energy sources and increase renewable energy production.

Taranis acquires stake in Corbetti project

On October 19, Taranis, an energy investment company, announced it had acquired a majority stake in the Corbetti geothermal project, located about 250 km south of Addis Ababa. The acquisition was completed at the beginning of October and aims to continue developing the project.

InfraCo Africa retains minority stake

The Corbetti project has been supported since 2015 by InfraCo Africa, a subsidiary of the Private Infrastructure Development Group (PIDG). InfraCo retains a significant minority stake in the project following Taranis's acquisition.

Taranis plans financial commitment

Taranis plans a financial commitment of up to 27 million USD for the Corbetti project. This includes a capital subscription of about 17.1 million USD and a convertible loan of 9.5 million USD for exploratory drilling.

Drilling to confirm geothermal potential

The exploratory drilling is intended to confirm the characteristics of the geothermal resource before developing a first 50 MW power plant, with a potential future expansion to 100 MW. Kevin Ziemer, CEO of Taranis Energy for Africa, emphasized the importance of advancing these drillings.

Power purchase agreement extended

The Corbetti project has a power purchase agreement with Ethiopian Electric Power, signed in March 2020. In May 2024, InfraCo Africa secured a two-year extension to continue preparing for drilling operations.

Ethiopia seeks energy diversification

Ethiopia is working to reduce its dependence on hydropower, which is a major component of its electricity mix. This effort is partly driven by the country's Energy Pact, part of the Mission 300 initiative, which aims to increase non-hydraulic renewable energy to at least 15% by 2030.

Future of Corbetti project uncertain

The realization of the 150 MW power plant at Corbetti remains conditional on the results of the drilling. No commissioning schedule has been announced yet, highlighting the uncertainty surrounding the project's timeline.