Tulu Moye Geothermal sign over $100 mln contract with Mitsubishi, SEPCOIII
Tulu Moye Geothermal Operations (TMGO) has signed a contract with consortium of Mitsubishi Corporation and SEPCOIII Electric Power Co. Ltd. to develop energy from geothermal energy in Assela, Eteya, Oromiya on Wednesday.
The agreement has a cost of over $100 million.
TMGO is one of the first Power Purchasing Agreements (PPA) in Ethiopia.
The agreement was signed among Nejib Aba Biya, TMGO’s Board Advisor and representative of the companies at the headquarters of the Ministry of Mines.
“The contractors will build the turbine and start construction in 6 to 8 months period,” said Nejib.
“We are planning to generate power initially by 25 Megawatt and increase it to 50 MW in a year”.
The contractors will launch construction of the power plant in September 2022 in a bid to start dispatching electricity to the Ethiopian Electric Power (EEP) in December 2024.
The selected contractor is consortium of Mitsubishi Corporation and SEPCOIII Electric Power CO., Ltd.: Mitsubishi Corporation (MC), a global integrated business enterprise that develops and operates business together with its offices and subsidiaries in approximately 90 countries.
TMGO is a project company incorporated by the French investment fund Meridiam and Icelandic Geothermal firm named Reykjavik Geothermal. Established in December 2017, TMGO signed a PPA with Ethiopian Electric Power (EEP) in 2017.
France will support the geothermal enegy development in Ethiopia.
“This agreement is one of French’s government landmark investment in Ethiopia. But it will not be the last one,” said Mr. Remi Marechau, France’s Ambassador to Ethiopia.
Geothermal energy is regarded as the most sustainable and cleanest form of energy. It has been estimated that Ethiopia has a geothermal power generation potential of up to 10,000MW.