December 19, 2017: The Government of Ethiopia, Ethiopian Electric Power and Tulu Moye Geothermal, a joint venture between Meridiam and Reykjavik Geothermal (RG) finalized the contracts for the 520 megawatt geothermal power project in Tulu Moye, today. The project is part of a historic agreement, along with the Corbetti Geothermal project, to build 1000 megawatts of geothermal power in Ethiopia.
The Tulu Moye Geothermal project is led by French, US and Icelandic investors and brings the preeminent Icelandic geothermal scientists to Ethiopia, in a great example of international cooperation at its best. The vision of the Ethiopian Government leaders to develop their vast geothermal resources, by partnering with international scientific expertise and private sector financing, has become a reality. Tulu Moye Geothermal will continue to work in the coming years with the technical and financial experts in Ethiopia to develop a leading global geothermal industry.
The Tulu Moye Geothermal Project will be constructed in the area around the Tulu Moye volcano in Oromia. The site has been studied intensely by the RG team and Ethiopian scientists together for the past 3 years. The results of the study have found the area to be one of the best geothermal resources in the world and it is expected to be able to sustain more than the original 500 MW planned for the initial project. The partners at Tulu Moye are planning to have the first 50MW on line by 2020 and the full 500 MW by 2023. The full project will be a private investment into Ethiopia of more than $USD 2 billion.
“We are very pleased to announce this historic agreement with TM Geothermal. This will be a significant step for EEP in realizing our strategic vision of being the regional leader for power generation and export in East Africa,” said EEP Chairman, H.E. Dr. Debretsion G/Michael. “We believe Ethiopia has over 10,000 MW of geothermal potential which provides base load power and is a perfect complement to our over 50,000 MW of hydropower potential.”
“The additional 500 MW that Tulu Moye will add to the Ethiopian Energy mix will complement our hydro and wind resources making the system more reliable” said CEO of EEP Engineer Azeb
“The Tulu Moye project represents an important milestone in Meridiam commitment to sustainably support Ethiopia’s development effort.’’
‘’This commitment started 3 years ago when the decision was made to establish our regional office for East Africa in Addis Ababa. Since then, the team has been working towards building a long-term partnership with the Ethiopian Government to develop its essential infrastructure through PPPs and thereby implementing the best Environmental and Social Governance (ESG) standards.’’
We look forward to continuing this promising engagement with EEP, the Government and Ethiopian talents to ensure that the Tulu Moye project results in tangible economic and shared benefits to local communities.
Emmanuel Birba, Project Manager of Meridiam and General Manager of the TM Geothermal Operations company.
“Reykjavik Geothermal (RG) working with the Government of Ethiopia and Ethiopia Electric Power, has led the development of the geothermal power sector in Ethiopia for the past six years,” said Gudmundur Thoroddsson, CEO of Reykjavik Geothermal. “As the first Independent Power Producer (IPP) in Ethiopia, RG has helped create the legal, financial and technical framework for the historic projects that have been signed today. We look forward to working with Meridiam SAS to develop the 500 megawatt Tulu Moye geothermal project and to working with all of our colleagues in Ethiopia to develop the geothermal industry in this great country.”
Reykjavik Geothermal is the leading developer of Geothermal Power in the world. It has been involved in projects over 20 countries and is currently developing its own projects in Ethiopia, Mexico and the Caribbean (St. Vincent). In Ethiopia, RG has been involved for the last 6 years developing the Corbetti geothermal project, and now the Tulu Moye geothermal project. The two projects will bring Ethiopia 1000+ MW of clean renewable base load power, which will contemplate the intermittent power from large hydropower dams, solar and wind. Reykjavik Geothermal is currently developing a third resource in Abaya which preliminary results point to still another +500 megawatts.
Developing the geothermal projects is bringing a new global interest to the Ethiopian market to develop project financed partnerships in renewable energy and infrastructure that will bring large amount of foreign direct investment into Ethiopia.
Meridiam was founded in 2005 by Thierry Déau, with the belief that alignment of interests between the public and private sector is possible and can help answer the lasting social needs of the communities. Meridiam is an independent investment firm specialized in the development, financing, and management of long-term and sustainable public infrastructure projects. With offices in Paris, New York, Toronto, Luxembourg, Istanbul and Dakar, Meridiam is a leading investor in public infrastructure across Europe and North America. Currently managing over €6 billion of assets, the firm has to date 60 projects under development, construction, or in operation.
Further information
Magnus Asbjornsson: ET +251 943794110, US +1 (917) 4991666, email magnus@rg.is
Emmanuel Birba: Tel. FR +33 6 28 52 70 73, US +1 646 480 0336, ET +251 968 539 557, email E.BIRBA@meridiam.com
