Ethiopia’s sole Geo-thermal project will cost around USD 270 million.
The 70 Megawatt Aluto Lango undertaking located in the Rift Valley is being financed by development agencies from Japan, France, Germany, and the World Bank; although Ethiopia is looking for a fully dedicated financial source. Currently the project produces 7.3 megawatts.
Geothermal Energy comes from extracting heat from the core of the earth. Despite its high price; in the range of three to USD 4,000 per Kilo Watt (KW); staggering when compared to wind power at USD 1,800 to 2,300 per KW; it has very minimal operating costs; is highly available and reliable. Ethiopia’s geothermal potential of around 5,000 MW comes from the Rift Valley, which runs from the Red Sea in the north up to the Southern Africa Nation of Mozambique.
Expected to be completed by 2015 it is the only Geo-thermal project in the Ethiopian government’s five year Growth and Transformation plan. That plan calls for increasing the country’s electric power generation capacity from 2000 MW in 2010 to 10 thousand MW by the end of 2015.
By 2025 the Ethiopian government plans to obtain much of its energy from renewable resources such as Hydro Power, Wind, and Sugar and Ethanol by products.