The Blue Nile Falls in Ethiopia. Ethiopia has signed an agreement to
build two geothermal power plants at a combined cost of $4 billion, to
be run by the country’s first privately-owned utility. FILE PHOTO | NMG
Summary
- Ethiopia is eager to meet rising energy demand from its industries as well as becoming the continent’s biggest exporter of energy.
- The project’s equity investors include the Paris-based asset manager Meridiam, as well as the Africa Renewable Energy Fund and InfraCo Africa - funds that focus on infrastructure.
- As Ethiopia’s first privately-owned utility, the project will be operated by the developers for a period of 25 years.
Addis Ababa
Ethiopia has
signed an agreement to build two geothermal power plants at a combined
cost of $4 billion, to be run by the country’s first privately-owned
utility.
The Corbetti and Tulu Moye plants will produce
a combined 1,000 MW of power upon completion in eight years time in the
volcanically-active Rift Valley south of the capital Addis Ababa.
Ethiopia
is eager to meet rising energy demand from its industries as well as
becoming the continent’s biggest exporter of energy.
“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
project’s equity investors include the Paris-based asset manager
Meridiam, as well as the Africa Renewable Energy Fund and InfraCo Africa
- funds that focus on infrastructure.
First private-owned utility
As Ethiopia’s first privately-owned utility, the project will be operated by the developers for a period of 25 years.
In
an economy traditionally dominated by state spending, the government
has suggested that the nascent sector could be a model for increased
private investment.
“Going forward, the government
recognises the added value to be gained by working in partnership with
the private sector, specifically in sharing with it the burden of
investment for large-scale power generation,” said Seleshi Bekele,
minister of water, irrigation and electricity.
Under a
new 2015-2020 development plan, Addis Ababa wants to raise power
generation to 17,346 MW from a current capacity of just over 4,300 MW
from hydropower, wind and geothermal sources.
Array of projects
It
has an array of projects under construction, including the $4.1 billion
Grand Renaissance Dam along its share of the Nile river that will churn
out 6,000 MW at full capacity upon completion within the next 10 years.
But
the country’s power ambitions have also caused disputes. Egypt - solely
dependent on the Nile - is concerned that the Renaissance Dam will
reduce the river’s flow.
Both countries are currently at odds over the project’s technical details
No comments :
Post a Comment