Wednesday, August 3, 2016

Ethiopia: Government Supports Geothermal Energy Development

Geothermal Energy Heats Up With Royalty Payment Exemption (

The newly approved bill on geothermal resources exempts royalty payments for companies engaged in thermal resource development and exploration in the country. Last week, Parliament, which was dissolved on July, 8, 2016, was summoned for an urgent session and unanimously approved a number of bills, including the "Geothermal Resources Development Proclamation 2016".

Before the new proclamation was approved by legislators, geothermal resources were considered as any other extractable mineral resource, with no consideration to the peculiar characteristics of this energy source. It was governed by legislation designed for other minerals. Investment in geothermal resource development was subjected to Mining Proclamation No.52/1993 and administered by the then Ministry of Mines and Energy (MoME). However, geothermal resource is unique, as it is a renewable source of energy.

"Royalty payments remain binding for non-renewable energy resource developers, but not for renewable ones," said Sahele Tamiru, director of energy study and development follow-up at the Ministry of Water, Irrigation and Energy (MoWIE).

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