Ethiopia geothermal power generation is set to grow after the country signed a power purchase agreement with Berkley Energy which is a Kenyan linked company that will see 1,000MW of energy being generated.
The signing was done by Azeb Asnake, CEO of Ethiopian Electric Power (EEP) and Edward Njoroge, one of the investors from Berkeley Energy.
The mega Corbetti Geothermal Power Project construction which is expected to cost a whopping US$ 4bn will be built in two stages which will see Ethiopia geothermal power generation bossted by 500MW online in the next five years. 25 per cent of the required investment in equity is anticipated to be raised in the project manager’s plan.
Some of Berkley Energy’s directors involved in the project include Eddy Njoroge, former managing director of power producer KenGen, who is part of the investment committee, Kagwe Njoroge, an investment analyst, Rachel Mutahi and Paul Kizito.
“We are really happy to buy the geotherma power in a bid to ensure Ethiopia is in the forefront of the renaissance that we are having in Africa of new renewable energy,” said Mr. Njoroge.
Berkley Energy is an international company that has offices in Singapore, Mauritius, London and New Delhi. The firm manages Renewable Energy Asia Fund and the Africa Renewable Energy Fund.
Corbette Geothermal is among the first projects to include external investors in a country that has restricted foreign direct investments. It is partnering with Reykjavik Geothermal of Iceland in this current geothermal project.
Ethiopia has been objective in expanding its energy generation capacity in the recent past with a target of 37,000MW by 2037.