Tullu Moye Geothermal Operations Private Limited Company has embarked on the development a 520 MW geothermal project in the Oromia Regional State with an outlay of two billion dollars. The Tulu Moye Geothermal project is located in the Oromia Regional State, East Arsi zone, near Eteya town. Tulu Moye Geothermal Operations plans to develop 520 MW of electricity in four phases. Reykjavik Geothermal (RG), an Icelandic company, and Meridiam, a US firm, are shareholders of Tullu Moye Geothermal Operations.
The power purchasing agreement (PPA) was signed by the Ethiopian Electric Power (EEP) and the Ministry of Finance and Economic Cooperation along with Corbetti Geothermal project on December 2017. The two geothermal projects, the first independent power producers in Ethiopia, would have an installed capacity of generating 1,000 MW. The total investment costs are estimated to be four billion dollars.
Today, the U.S. Trade and Development Agency awarded a grant to TM Geothermal Operations Private Limited Company (TMGO)* , an Ethiopia-based company, to coordinate a feasibility study supporting development of the first 50 megawatts of a planned 520-megawatt Tulu Moye Geothermal project in the Main Ethiopian Rift. The study will be conducted by U.S. firm, Delphos International, Ltd., which has expertise in supporting power sector development and financing from its work across 35 countries.
In December 2017, Ethiopian Electric Power signed implementation agreements and power purchase agreements allowing the private sector to develop the Corbetti and Tulu Moye geothermal projects. These historic agreements will support 1,000 megawatts of geothermal power generation and over $4 billion of private investment in Ethiopia.
Earlier this month, the Department of Infrastructure and Energy of the African Union and the German Federal Institute for Geosciences and Natural Resources (BGR) organized a 2 Day Workshop on the ‘African Union Code of Practice for Geothermal Drilling’ with 125 participants in Addis Ababa, Ethiopia. The Department of Infrastructure and Energy of the African Union and the German Federal Institute for Geosciences and Natural Resources (BGR) organized a 2 Day Workshop on the ‘African Union Code of Practice for Geothermal Drilling’.
The workshop with approximately 125 participants took place on June 13-14, 2018 at the African Union in Addis Ababa, Ethiopia. The audience represented the full spectrum of public and private developers, investors and international donor agencies currently active in the geothermal industry in Ethiopia: Ministry of Water, Irrigation and Electricity (MoWIE), Directorate of Energy Study and Development Follow-Up, Ethiopia Energy Authority (EEA), Geothermal Resource Development License & Administration Directorate (GRDLAD), Ethiopian Electric Power (EEP), Geological Survey of Ethiopia (GSE), Cluff Geothermal Ltd. Corbetti Geothermal Ltd., OrPower 12 Inc., Reykjavik Geothermal ehf (RG), Tulu Moye Geothermal Operations Plc., and ELC Electroconsult S.p.A., Federal Ministry for Economic Cooperation and Development (BMZ) of Germany, Japan International Cooperation Agency (JICA), Worldbank, Ministry of Foreign Affairs and Trade of New Zealand (NZ-MFAT), United States Agency for International Development (USAID), US Energy Association (USEA).
A signing ceremony of two grants Agreements took place at the Ministry of Finance and Economic Cooperation (MoFEC) between Admasu Nebebe, Ethiopian State Minister of Finance and Economic Cooperation, Frederic Bontems, Ambassador of France to Ethiopia and Mr Ignace Monkam-Daverat, the French Agency for Development (AFD) Regional Manager in Addis Abeba, for a total of 18 million euros. The first agreement, a 10 million euros grant will be provided by AFD in contribution to Urban Development will be part of a program co-financed by the World Bank and the government of Ethiopia. The aim is to strengthen the capacity and performance of local urban governments. It will contribute to expand sustainable urban infrastructure and services, as well as to promote local economic development in cities across Ethiopia.
With the second agreement, 8 million euros grant will be provided in contribution to the Tendaho Geothermal Development Project. It is funded by the European Union, through the European Union Africa Infrastructure Trust Fund (EU-AITF). This investment grant constitutes an additional funding to this project, which already benefited from a 9 million euros concessional loan from AFD and a total of 7,5 million euros from previous EU-AITF grants. The financing will enable to complete the drilling activities planned as part of the geothermal exploration and development effort in the Afar region.