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20th December 2017

PIDG backs first geothermal IPP in Ethiopia

Pioneering renewables project will boost access to electricity

A pioneering renewable energy scheme hopes to bring up to 70MW of power to Ethiopia before gradually mobilising US$2bn in foreign direct investment to increase installed capacity to 520MW.

The Corbetti Geothermal project, which the Private Infrastructure Development Group (PIDG) company InfraCo Africa is funding with a US$30m commitment, will be the first geothermal IPP in Ethiopia, and the second in sub-Saharan Africa.

Corbetti Geothermal is an important part of Ethiopia’s ambitious plan to reach 6.96m consumers by 2019/20.

PIDG CEO Philippe Valahu said: “Energy is a key component in breaking down barriers to transforming economies and social development.

“Poor electricity reduces productivity and hampers the development of industry and trade which are important drivers of employment and growth.

“I am honoured that PIDG is able to play a part in the introduction of geothermal power to Ethiopia’s energy mix – a turning point in the country’s development.”

In 2015, according to the World Bank just 27% of Ethiopia’s population had access to power, whilst businesses reported an average of 8.2 power outages a month, impacting upon sales and increasing costs due to reliance on back up generation.

Pioneering renewables project will boost access to electricity