Ethiopia has just signed an agreement related to the construction of two geothermal plants having a combined capacity of 1,000 MW. The Corbetti and Tulu Moye plants, as they are named, will cost $4 billion and will be located in the Rift valley, south of Addis-Abeba.  

This initiative falls in line with the national power strategy which aims to make Ethiopia the largest power exporter of the continent, by increasing its installed capacity from 4,300 MW currently to 17,346 MW over the next 10 years.

"No doubt the success of this effort will have a significant impact in the country's future economic well-being," said Azeb Asnake, chief executive of state-run Ethiopian Electric Power (EEP).

The fact that the funds mobilized for this project are in most part private funds represents a major progress in the country which usually relies on its own resources for investments. For example, the $4 billion Grand Renaissance Dam was financed by the State and bond subscriptions by citizens.

Meridiam, Africa Renewable Energy Fund and InfraCo Africa-Funds are the companies that will finance the construction of the two geothermal plants.

Gwladys Johnson Akinocho