Geothermal exploration and development in Ethiopia

Abstract

Surface exploration for geothermal resources in Ethiopia began over four decades ago. The geothermal exploration so far have identified over 22 areas that have geothermal resources suitable for electricity generation, with a total potential of over 10,000 MW. These resources are considered to have high quality in terms of temperature and chemistry. Despite the countries long term geothermal exploration and huge potential, the progress of development of geothermal resources has been slow. Deep drilling has been conducted only in two prospects and only a 7.2 MW pilot plant has been installed so far. However, since recent years the country has adopted, a renewable energy mix policy, geared towards the advancement of various renewable resources development, including geothermal energy resources. Accordingly both the public and private sector geothermal projects are being implemented at larger scale than before. The public sector has focused in developing, the two most explored prospects in the country, the Aluto Langano and Tendaho geothermal fields. In these prospects detail surface exploration, test well drillings and feasibility studies are being conducted. The private sector has concessions in about seven prospects and is being actively engaged in exploration, including in green fields. A new geothermal law for operation of geothermal activities in both the public and private sector has been approved. A Proclamation cited as the “Geothermal Resources Development Proclamation” has been put in to force in 2016. The country’s geothermal development plan considers the development of 675 MW geothermal power in the medium term and 5000 MW by 2037. There are challenges to achieve the plan that may include: (i) high upfront capital costs required and availability of sufficient finance, (ii) risks associated with the drilling phase, and (iii) limitations in local human resource capacity