Corbetti Owner’s Engineer tender issued following PPA extension
Addis Ababa, Ethiopia: Corbetti Geothermal PLC (CGPLC) is pleased to announce that it has been awarded a two-year time extension under its Power Purchase Agreement with Ethiopia Electric Power (EEP). This time extension will allow CGPLC to proceed with its exploration drilling program on the Corbetti resource in Ethiopia, one of the most highly prospective resources in the Ethiopian Rift Valley, comparable in size with the Olkaria resource in Kenya.
The PPA sets out the commercial terms for a geothermal energy project of up to 150 MW split into two phases of 50 MW and 100 MW. The PPA also grants Corbetti Geothermal PLC a right of first refusal over further geothermal expansion in the license area, with early indications from surface exploration suggesting that the resource may be suitable for up to 500 MWe of installed generation capacity.
Located in Oromia, 250km south of Addis Ababa, the project is being developed by Corbetti Geothermal with the support of principal project participants Reykjavik Geothermal, the African Renewable Energy Fund, and Private Infrastructure Development Group (PIDG) company, InfraCo Africa.
General Manager of Corbetti Geothermal PLC, Jim Randle said of today’s announcement: “The project has overcome a number of challenges in recent years, and we are pleased to have the ongoing support of EEP and our shareholders as we take the next steps towards unlocking the potential of the Corbetti geothermal resource.”
Gilles Vaes, CEO of PIDG company, InfraCo Africa said, “InfraCo Africa is excited to support Corbetti Geothermal as it progresses towards exploratory drilling. We have been committed to Corbetti Geothermal for many years and remain dedicated to working with our partners to develop Ethiopia’s geothermal resource to ultimately deliver clean, baseload power for the benefit of the country’s domestic and business customers.”
Trent Philipp, Chief Development Officer of Reykjavik Geothermal added, “We are pleased to be moving forward with drilling in Corbetti. The Corbetti geothermal resource is one of the best in the world with significant potential even beyond 150MW. RG remains committed to helping Ethiopia realize its significant geothermal potential and develop this important renewable energy source.”
The company is now planning to proceed with a three-well exploratory drilling program, to confirm the inferred resource. This will allow the optimum development strategy to be developed based on the indicated resource characteristics, estimated potential
electricity generation capacity and EEP’s expansion plans which will be documented in a bankable Feasibility Study.
Work has been completed on site to prepare the drilling infrastructure, including the drilling of four water wells to supply water for the drilling rig. Access roads built by the project have already significantly improved mobility in the vicinity of the project, promoting trade of agricultural produce. Work to upgrade these roads to accommodate the arrival of large drilling equipment has been completed and clearing and earthworks are also underway to build the well pads.
As part of further preparations for starting drilling, CGPLC wishes to engage the services of an Owner’s Engineer to support the drilling and well testing program and the preparation of the Feasibility Study. Interested parties should contact the CGPLC General Manager, Mr. Jim Randle at jim.randle@corbettigeothermal.com, to request a copy of the RfP and bidding documentation. Bids will close at the end of May 2024.
Notes to Editors:
In 2019 the Government of Ethiopia released an update National Electrification Plan with the target of achieving universal access to electricity through a combination of on- grid and off-grid supplies by 2025. This requires 13.5 GW of new on grid generation, of which 840MW is geothermal.
The development of the Corbetti geothermal project was commenced in 2011 by Reykjavik Geothermal. In 2014, Berkley Energy through the Africa Renewable Energy Fund acquired the majority interest in the project and was joined by PIDG company InfraCo Africa in 2015.
Corbetti Geothermal signed a Power Purchase Agreement with Ethiopian Electric Power and an Implementation Agreement with the Government of Ethiopia in March 2020. The PPA sets out the commercial terms for a 150MWe project split into two phases of 50 MWe and 100 MWe.
The project has invested time and resources in supporting the framework for geothermal power in Ethiopia and, together with the Government, has developed a robust set of project agreements which are useful not just for geothermal power but for any future power project involving the private sector.
Read more detail about the project here: http://www.infracoafrica.com/project/corbetti/
Corbetti Geothermal PLC is an Ethiopian project company solely focused on developing, financing, constructing, and operating the Corbetti geothermal power project.
Ethiopian Electric Power (EEP) works to provide adequate and quality electricity generation and transmission for Ethiopia and aims to be a competitive exporter of energy in the wider region by 2025. EEP is responsive to the socio-economic development and environmental protection needs of the public and is continuously improving its management practices as a first-class provider of electric power.
Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub- Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity, and impact. Since 2002, PIDG has supported 211 infrastructure projects to financial close which provided an estimated 222 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. To find out more visit: www.pidg.org
InfraCo Africa: InfraCo Africa is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects and by providing development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). To find out more visit: www.infracoafrica.com
African Renewable Energy Fund managed by Berkeley Energy launched in 2014 and is a fund established to support small to medium scale independent power producers (IPPs) across sub-Saharan Africa. Managed by Berkeley Energy, an experienced renewable energy fund manager active in Asian and African emerging markets, AREF seeks to invest in grid-connected development stage renewable energy projects including small hydro, wind, geothermal, solar, biomass and waste gas. To find out more visit: www.berkeley-energy.com/
Reykjavik Geothermal was founded in 2008 by one of the world’s most experienced geothermal management and science teams. The RG management team has been involved with the development of over 3,000 MW of geothermal projects in over 30 countries. RG has the experience to untap the vast commercial potential of geothermal energy while also being committed to the sustainable use of this naturally occurring resource capable of providing near zero-emission baseload power. To find out more visit: www.rg.is/en