Wednesday, April 10, 2019

Ethiopia: New Bill Eases Registration and Licensing Processes for Geothermal Development Companies

New Bill Appears to Ease Geothermal Investment (Addisfortune News)

So far, 10 companies are licensed to explore and produce geothermal energy

A new bill that eases registration and licensing processes for geothermal development companies has been submitted to the Council of Ministers for approval.

Drafted by the Ethiopian Energy Authority last year, the draft regulation categorises the resource into two sections depending on the capacity of energy. Grade one is a geothermal resource that is able to generate electric power, while Grade two is used for agricultural, industrial, medical and recreational purposes.

The bill has also identifies three types of licenses for geothermal developers. Reconnaissance is the first stage in licensing that is granted for two years and is non-renewable. The exploration license allows developers a five-year exploration window that can be renewed for two year-long terms. Wellfield development licenses are the final license issued and allow for 25 years worth of production concession  options that can be extended.

Tulu Moye Geothermal Operations and Corbetti Geothermal have signed power purchase agreements (PPA) with Ethiopian Electric Power (EEP). The two companies are expected to start drilling soon and eventually generate 500 MW of energy each.

OrPower Twelve Incorporated is in the exploration stage with four licenses and is currently negotiating with EEP to sign a PPA. OrPower operates at Boku, Oromia, Dofan, Afar and Wolaita Sodo and Wondo Genet in the southern regional state. Another UK-based firm, Cluff Geothermal Plc, is also in the exploration stage in Amhara, Afar and Oromia regional states and is in negotiation with EEP for a power purchase agreement.

Reykjavik Geothermal Consulting, an Icelandic Company, is also licensed to explore geothermal energy at Abaya near Wolaita. It has begun negotiations with EEP to sign a PPA.

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