Ethiopia has signed an agreement to build two geothermal power plants with a total investment of 4 billion U.S. dollars and is operated by the country's first privately owned utility company.
It is reported that the two geothermal power plants Corbetti and Tulu Moye will be built in the active volcanic rift south of Addis Ababa in the capital with a total installed capacity of 1,000 megawatts and the entire project is expected to last eight years.
Ethiopia is eager to meet the rising energy needs and become Africa's largest exporter of energy.
Azeb Asnake, CEO of Ethiopian Power Company (EEP), said: "There is no doubt that this effort will have a significant impact on Ethiopia's future economic well-being."
Equity investors in the project include Meridiam, a Paris-based asset management company, and the African Renewable Energy Fund and the InfraCo Africa fund, which focuses on infrastructure.
As Ethiopia's first privately owned utility company, the project will be run by the developer for 25 years.
Under the new development plan for 2015-2020, Ethiopia hopes to add 17,346 megawatts of generating capacity, of which hydropower, wind power and geothermal power will account for more than 4,300 megawatts.