• Ethiopia estimates over 1,000 MW in geothermal potential in the Great Rift Valley
• Key projects include Tulu Moye, Aluto Langano, Corbetti, and Tendaho
• Geothermal power could replace 500 million liters of diesel and create 10,000 jobs

Ethiopia aims to diversify an electricity mix still dominated by hydropower and tap the geothermal resources of the Great Rift Valley. State utility Ethiopian Electric Power has estimated the country’s geothermal potential at more than 1,000 MW, capable of providing stable, continuous electricity with a capacity factor above 90%. Such a resource could replace about 500 million liters of imported diesel each year and strengthen national energy security.

Several major projects reflect this ambition. At Tulu Moye, a 150 MW development is under way, with a first 50 MW phase led by the private sector. At Aluto Langano, the country’s first operational geothermal plant, capacity is expected to increase from 7.3 MW to 75 MW. It was on this site that Kenya Electricity Generating Company (KenGen) drilled a seventh 3,000-meter well in 2022, illustrating regional cooperation. Additional projects include Corbetti, with a 500 MW target, and Tendaho, a 20 MW pilot expandable to 100 MW.

For now, Ethiopia’s geothermal capacity remains limited. According to the International Renewable Energy Agency (IRENA), it reached only 7 MW at the end of 2024, compared with Kenya’s 940 MW, the continental leader. Even so, the country is progressing in a favorable global environment. The World Bank has committed $350 million to the Geothermal Energy Development Project, designed to reduce exploration risks and attract investors such as Meridiam, U.S. DFC, and Iceland Drilling Company to geothermal ventures.

With an estimated cost of $0.05 to $0.07 per kWh—far lower than diesel’s $0.25—geothermal energy could create nearly 10,000 direct and indirect jobs by 2030 and support the growth of industrial zones. If Ethiopia succeeds in developing this potential, it could emerge as a major player in East Africa’s geothermal landscape and as an example of sustainable integration of renewable base-load power.