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The World Bank has published a Procurement Notice on behalf of Ethiopian Electric Power – P133613 – Ethiopia Geothermal Sector Development Project – ET-EEP-24663-CW-RFB

The invitation for bids for a Full Service Drilling Contractor and Consumable for Alalobad Geothermal Project in the Federal Democratic Republic of Ethiopia with Ethiopian Electric Power (EEP). The contract is tendered under a loan agreement of the World Bank with EEP/ Ethiopia.

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Reykjavik Geothermal, a power developer backed by hedge fund billionaire Paul Tudor Jones II, is about to kick off a $4.4 billion project to bring volcanic energy to Ethiopia.  

Tapping long-built Icelandic expertise in channeling volcanic power, the developer is preparing to start exploration drilling in September for two 500-megawatt plants in Corbetti and Tulu Moye, south of the capital Addis Ababa. At full-scale, each project would become the largest independent power producer in Africa, according to RG. 

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State utility firm Ethiopian Electric Power (EEP) on Monday signed an agreement with two Chinese firms and one Kenyan firm for the 70 MW geothermal energy drilling project. The two Chinese firms were Shandong Kerui Oilfield Service Group and Shandong Kerui Oilfield Service Group Co. Ltd. Another firm Kenya Electricity Generating Company was also part of the agreement.

In a press statement, EEP said the two Chinese firms and one Kenyan firm are expected to supply drilling materials as well as drill wells for possible geothermal energy sources in central Ethiopia. Named the Aluto- Langano geothermal project, it's part of the Ethiopian government's plans to generate up to 5,000 MW of geothermal energy in the coming few years. Ethiopia currently produces only 7.3 MW of geothermal energy.

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Energy experts advised the Ethiopian government to build its institutional capacity to tap into the huge geothermal energy resources. At a consultative workshop organised by the World Bank yesterday a team of geothermal experts stated that the country should set up the right institutions, regulatory body and human resource that can enable the country to tap into its enormous geothermal energy potential. The experts said that though Ethiopia has the potential to generate 10,000MW of electricity from its vast geothermal resources found in the east Africa rift system it has not yet reached development stage unlike its neighbor Kenya which is generating 650MW from geothermal resources. Though Ethiopia started exploring its geothermal potential in the 1970s the country’s geothermal sector is at its infant stage.

Minister of Water, Irrigation and Electricity, Sileshi Bekele (Eng.), said that in line with the Ethiopian government’s climate resilient green economy strategy, harnessing renewable energy resources is a priority for the country, adding that his Ministry supports the development, adoption and implementation of policies and regulations. Geothermal is a reliable source of energy and is environmentally friendly. “The Ministry promotes development and deployment of new and renewable energy technologies to address the growing energy demand and climate change concerns of the country,” Sileshi said. He pointed out that as geothermal resource is a reliable source of energy, environmentally sustainable and has high capacity factor his Ministry gives due to attention for the development of geothermal power projects.

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