24 October 2013, Addis Ababa – The signing ceremony at the Sheraton Addis officially launches the establishment of Corbetti Geothermal Power as an Ethiopian based company for geothermal development and operations. The total cost of the power project is 4 billion USD.
Reykjavik Geothermal, an Icelandic company financed by American shareholders, is the owner of Corbetti and has numerous geothermal concessions in Ethiopia.
Ethiopian Electric Power Corporation (EEPCo) agrees to buy the energy generated by the company for the coming 25 + years. The signing ceremony attracts the Deputy Prime Minister for the Finance and Economic Cluster and Minister of Communications and Information Technology, Debretsiyon Gebremichael, Minister of Mines Sinkinesh Ejigu, ambassadors, CEOs and other dignitaries.
After signing the ever largest direct investment in the sector, CEO of EEPCo Mihret Debebe said geothermal power plants offer alternative energy for power hungry growing industries in the country.
What makes seamless geothermal power plants is their round the clock energy provision to industries seeking uninterrupted power supply. Corbetti Geothermal Power is estimated to generate over 1000MW electric power once it completes its two phase construction.
The first phase of construction is expected to generate 500MW within five years and the remaining would come in the next 8 years, according to the agreement signed between the company and Ethiopian government.
Nejib Abba Biya, Principal of Rift Valley Geothermal and co-founder of Allana Potash, is initiator of the project. After signing the agreement, he said “with bold leadership in place it is possible for Ethiopia to achieve the much talked about middle income economy and more.”
He admired the leadership of the government in turning the project earlier assumed to be of 300 MW to 1000+MW plant.
With Reykjavik Geothermal, which is one of the most competent companies in the geothermal energy development, Abba Biya believes such big projects have the power to move Ethiopia forward to help it meet the need for better living standard.
Minister Debretsiyon lauds all those involved for making this big project possible after 18 months of studies and meticulous negotiations. He pledges the government is there to help such investments happen by providing the necessary support.
-Ethiopia Radio and Television Agency