Opportunities and Challenges in Geothermal Exploration and Development in Ethiopia

Abstract

Surface explorations for geothermal resources in Ethiopia began over three decades ago. The geothermal explorations so far have identified over 22 areas that have geothermal resources suitable for electricity generation, with a total potential of 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 geothermal resources development, including other renewable 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 Auto Langano and Tendaho geothermal fields. Under the public sector, geothermal power plants planned for commissioning by 2020 include: (i) 70 MW plant at Aluto Langano and 100 MW plant at Tendaho Additional geothermal power plants are expected to be commissioned at Corbetti geothermal field by private sector involvement, with a total capacity of 1000 MW, to be developed under various phases. Despite the recent efforts to advance geothermal development in Ethiopia, there are challenges that include: (i) high upfront capital costs required and availability of sufficient finance, (ii) risks associated with the exploration phase, and (iii) limitations in local human resource capacity and low level of experience in institutional set up, a legal and regulatory framework.