Addis Ababa, Ethiopia – Determined to prioritise geothermal development as a key area in energy development, the Ethiopian government has signed a partnership agreement with the Icelandic International Development Agency (ICEIDA), it was officially announced here Tuesday.
Under the deal, the Geological Survey of Ethiopia and the Ethiopian Electric Power Corporation will work together with ICEIDA in geothermal development and capacity building.
Ethiopia has a geothermal potential of 5000 MW but only a fraction of it has been developed.
“The overall objective is to assist the government to increase renewable energy production through low emission geothermal energy development for social and economic benefit,” the government said while announcing the deal.
ICEIDA will assist Ethiopia’s implementing agencies in surface exploration and associated geophysical and geochemical studies to identify locations for drilling and production wells in target sites.
The agreement was initiated under an Iceland-World Bank compact on geothermal energy.
PANA recalls that last week, the African Union Commission (AUC) and ICEIDA signed a memorandum of understanding for cooperation in the field of geothermal energy, in AUC’s bid to assist African Rift Valley countries in the development of geothermal energy resource.
Under the MoU, the AUC and ICEIDA will work together to develop and implement geothermal energy policy as well as investment, regulatory and institutional guidelines, among other areas, in eleven African Rift Valley countries.