There are many reasons for his company to show interest to exploit geotermal resources in Ethiopia
As a fast growing economy, the annual energy demand of the nation is increasing by 20 per cent and taking this in to consideration the government is mobilizing both domestic and foreign financial resources to meet the demand and encouraging results have been recorded.
At the signing ceremony between the Ministry of Water, Irrigation and Energy and Corbeti Geothermal Energy company, the Chairperson Edward Njoroge said that his company is going to invest 4 billion USD to exploit the vast geothermal resource found in Corbeti near Hawassa Town. In its first phase, it already invested 2 billion USD to generate 500 megawatt while in the second phase, the remaining will be generated and with in 8 to 10 years 1,000 megawatt geothermal energy will be supplied to the national grid.
According to Njoroje, there are many reasons for his company to show interest to exploit geothermal resource in Ethiopia. It is available in abundance, it is renewable, it is clean and reliable. In addition to that, the growing energy demand in the country pushed the company to involve in such energy endeavours. He further said that, Ethiopia has a potential to exploit 7 thousand megawatt only from the geothermal resource and this makes the nation to be a destiny for Foreign Direct Investment.
Njoroje also noted that the US government and USAID played crucial role in facilitating negotiation between the government of Ethiopia and the company. According to the agreement, the company is entitled as owner of the energy and the government will purchase the energy.
The Ethiopian Electric Power Chief Executive Officer Azeb Asnake on her part said that, the first phase of the GTP is successfully completed and for that to happen, the role of the energy sector was decisive. In GTP II the demand for energy will be increasing. Hence, to meet the demand the Corbeti Geothermal Project will be expected to play vital role. She further said that the project can be seen as indication of the involvement of the multinational companies in Ethiopia’s multifaceted development endeavour. According to Azeb, the preliminary survey of the area and surface exploration was made by the Reykjavik US based geothermal company in 2013 and the project greatly reduced financial burden on the public sector and broaden the role of private sector in energy exploitation.
Senator Edwin Mark on his part remarked that the realization of the project is critically important for the national development and the more energy resources availed the more flourishing will be the health, education and industrial sectors.
