(Courtesy CIA.gov) |
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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