Ethiopian Energy^Power Business Portal,eepBp

 Tulu Moye Geothermal Operations Plc has started the first phase of drilling to generate 50MW of power in Iteya geothermal site in Arsi Zone of Oromia Regional State. The drilling operation is part of the project to construct a 150MW geothermal power plant by 2025, which will be delivered in two phases, with an estimated total investment of 800 million dollars.

The exploration of the three wells during the first phase was partially funded by the Geothermal Risk Mitigation Facility for Eastern Africa, which has supplied 10 million dollars. The United States Trade & Development Agency has financed 1.2 million dollars. The three wells at the site will each reach a depth of 2,500m below sea level. The Kenya-based company KenGen has started the drilling process to generate 50MW, which is expected to be finished by February 2023. The drilling currently employs 400 people, and 80pc are local residents. KenGen has 30 to 40 employees with 10 to 30 years of experience in the field.

The project also includes the construction of 15Km of gravel road in Tosa District and the drilling of portable water wells for the residents. Both additional projects are already underway. The road is being constructed by Mikada Engineering with the supervision of MGM Consulting at a cost of 120 million Br. Ethiopia, which is highly dependent on hydro and wind power sources, has the potential to generate 10,000MW of energy from geothermal sources. Tulu Moye, the first private sector company to start drilling a geothermal energy project, says the area has the ability to supply 2,000MW over the next 10 to 30 years.

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Tulu Moye Geothermal Operations (TMGO), a USD 800 million project, has started its drilling in Tulu Moye, located in Arsi Zone of Oromia Region. This is to be a long term project, due to be completed by 2025 and generate 150 MW, which will be added to the Ethiopian Electricity Grid base-load needs.  

A self-described, “first independent energy company in Ethiopia,” the plan is to generate 50 MW on the completion of the first base by 2023 and 150 MW by 2025. “There is to be huge benefits to the country as well as the community, including 400 employment opportunities and sustainable electricity,” Darrel Boyd, the head of the project told The Reporter. “We are to offer internship, as well as a three year apprenticeship to 40 young people from the community and have them work with us once they graduate.”

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It will Contribute to Stabilizing Electric Power Supply and Diversification of Electric Power Sources in Ethiopia -

Toyota Tsusho Corporation ("Toyota Tsusho") signed a contract with Ethiopian Electric Power for the construction of the Aluto Langano Wellhead Geothermal Power Plant with a capacity of 5 MW on February 14. The construction funds will be arranged by the Grant Aid program by the Japan International Cooperation Agency (JICA) (Grant Agreement amount: 1,842 million yen). The key component of the plant such as a geothermal steam turbine and its generator, will be manufactured and supplied by Toshiba Energy Systems & Solutions Corporation, and the construction work for the plant will be carried out by Egesim Energy Electro-Mechanic Construction Contracting Co., Ltd., a Turkish engineering company. This project is one of pioneers in the geothermal power plant for commercial use, and expected to be a fundamental development in geothermal power development in Ethiopia.

Electricity Condition in Ethiopia

Electricity demand in Ethiopia has been rising steadily due to a rapid population growth and remarkable economic development. However, hydroelectric power generation, which provides about 90 percent of Ethiopia’s electricity demand, has become unstable due to the impact of climate change in recent years. As a result, electricity shortages in Ethiopia have become serious and the country is forced to implement planned outages. This situation creates urgent needs for power development in other renewable source for continuous stable power supply. Among the various renewable energy sources, the geothermal power draws higher expectation as a reliable power baseload for its stable availability.

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Just before Christmas, it was reported that KenGen has started the mobilisation of its drilling rig for the Tulu Moye geothermal project in Ethiopia. We reported earlier this year, that a contract for drilling services was signed by Tulu Moye Geothermal and KenGen. Under the $56 million contract, KenGen will drill 12 geothermal wells, installing water supply system and equipment. Around 48 truck loads will be sent to the project site by KenGen.

The company is taking great pride in taking its geothermal experiences and services outside of Kenya. “Our projects in Ethiopia come at a time when KenGen’s diversification strategy has taken off in earnest. For more than 40 years now, KenGen has drilled more than 300 geothermal wells & invested in experts with considerable experience in geothermal development.”, so Rebecca Miano, Managing Director of KenGen.

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