STATUS OF GEOTHERMAL EXPLORATION AND DEVELOPMENT IN ETHIOPIA

Abstract

Ethiopia is located in the Horn of Africa between 3.5° and 14°N and 33° and 48°E. Energy consumption in Ethiopia is still: (a) low in per capita terms, and (b) under developed by structure. The energy consumption comprises: (i) less than 2% from electricity, (ii) about 5.4% from hydrocarbon fuels, and (iii) the balance from traditional biomass fuels. The electrical energy demand growth in recent years has been very significant and an annual growth rate of 25% is expected at the end of 2010. The current generation capacity is 2000 MW from hydro, thermal and geothermal. The generation expansion plan envisages a total installment of 16,000MW from mainly hydro and complimentary from geothermal and wind. The sector policy and regulatory framework supports IPP development. Subsequent to the National Economic Policy (NEP) of 1991 that encouraged private sector participation in the economic development of the country, a number of Proclamations and reforms have been made, aimed at enabling private participation within the electricity sector. Development of renewable energy resources for power generation is now being encouraged through the establishment of feed-in-tariffs (FIT) for such sources. A draft law and regulations supporting FIT is soon to be passed into law. Ethiopia started long-term geothermal exploration in 1969. About 120 localities within the rift system are believed to have independent heating and circulation systems. From these localities about two dozen are judged to have potential for high enthalpy resource development, including for electricity generation. Only two prospect areas have been subjected to exploration drilling to date. Currently geothermal exploration and resource assessment is being carried out in strategically selected prospect areas in the Ethiopian Rift Valley.