Development of a geothermal field on the Ethiopian Rift

Background

In 2017, Meridiam partnered with Reykjavik Geothermal (RG) to codevelop the Tule Moye geothermal project located 100 km south-east of Addis Ababa. The Tulu Moye geothermal project consists of the development, design, construction, financing, operation and maintenance of a 150MW geothermal power plant. The project is split into two phases, with Phase 1 corresponding to a 50 MW plant.

In December 2017, the Tulu Moye project company signed a 25-year Power Purchase Agreement (PPA) and Implementation Agreement (IA) with Ethiopian Electric Power (EEP), the national utility, backed by the Government of Ethiopia through the Ministry of Finance.
The project is developed in the context of the Government of Ethiopia seeking to increase the country’s power generation capacity from the current c. 3 GW to over 17 GW by 2020 and to about 35 GW by 2037 (*), and to benefit from its abundant, yet untapped geothermal potential.

Source (*) Ethiopian’s Growth and Transformation Plan II, https://ethiopia.un.org/en/15231-growth-and-transformation-plan-ii, Meridiam Infrastructure Africa Fund Investor Report 2021 Quarter 3

Tulu Moye has an up-to-date E&S Risk Assessment as well as the relevant required policies and frameworks to deal with ESG matters arising from all aspects of the project (civil works, drilling and plant construction). All management plans are prepared in compliance with IFC Performance Standards. The project maintains good relations with the local community and the broader Oromia regional authorities.

The project has created more than 300 local jobs during civil works and geothermal drilling phases. The $900k, 2020-2023 community investment plan focuses on:

• supply of potable water,
• access to electricity and
• jobs through SME creation and growth. The SME support scheme and training has already commenced.

Vocational and technical training scholarships have been awarded and solar energy supply has been installed in the community health centre, alongside a newly constructed office for one of the local communes.

Stage:

Commercial close

Learn more about the project:

Meridiam signs a Power Purchase Agreement (PPA) and Implementation Agreement (IA) with Ethiopian Electric Power