Ethiopia Renegotiates Key Deals to Restart Multimillion‑Dollar Geothermal Projects: Tulu Moye and Corbetti Move Toward Restart After years of security disruptions, financing shortfalls and contract disputes, two of Ethiopia’s highest‑profile geothermal concessions , the Tulu Moye (Meridiam/Reykjavik Geothermal) and Corbetti projects , are actively renegotiating with senior government authorities to resume development. The talks mark a practical pivot from litigation and prolonged suspension toward restarting drilling and project implementation, with implications for Ethiopia’s energy mix, investor confidence and the regional geothermal supply chain. Why these renegotiations matter For an emerging geothermal market like Ethiopia, the fate of Tulu Moye and Corbetti matters on three fronts: capacity and grid impact, investor signaling, and the country’s ability to mobilize large, foreign‑led project finance. Each project alone represents several hundred megawatts of potential dispatchable...
The Rising Potential of Geothermal Energy: Insights from the IEA
The Internationa geel Energy Agency (IEA) has shed light on the transformative potential of geothermal energy in its latest report. As a clean, renewable resource, geothermal is uniquely positioned to play a vital role in achieving global climate goals, thanks to its reliability and diverse applications. The report emphasizes the urgent need for investments, technological innovation, and supportive policies to maximize geothermal's contribution to the energy transition.
Current Status and Future Projections
Geothermal energy is currently underutilized, generating 67 TWh of electricity annually. However, with enhanced deployment strategies, this figure could soar to 1,400 TWh by 2050. Additionally, direct applications of geothermal heat could rise to 1,600 TWh annually. This growth would significantly impact decarbonization efforts, reducing reliance on fossil fuels while providing consistent baseload power and heat.
Global Leaders in Geothermal Deployment
Countries like Indonesia, Kenya, the United States, and Iceland are already leveraging their geothermal resources. Kenya, for instance, continues to expand its capacity at the Olkaria geothermal fields, while Iceland utilizes geothermal heat for 90% of its space heating. Meanwhile, Indonesia is tapping into its abundant geothermal potential, aiming to become a global leader in the sector.
Applications Beyond Power Generation
The IEA underscores geothermal’s versatility, extending beyond electricity generation. Geothermal heat is increasingly used in district heating systems, agriculture, aquaculture, and industrial processes. For example, greenhouses in the Netherlands rely on geothermal energy for sustainable farming, while countries like Turkey have developed geothermal district heating networks.
Overcoming Barriers to Expansion
Despite its promise, geothermal energy faces significant challenges. High upfront exploration and drilling costs deter investments, as success rates in identifying viable resources remain low. The IEA recommends improving risk mitigation measures, such as government-backed drilling programs and private-public partnerships, to attract investments. Additionally, the lack of awareness among policymakers about geothermal’s diverse applications has limited its adoption. Enhanced education and promotion of its benefits are crucial to addressing this gap.
Innovation and Collaboration
Technological advancements, such as enhanced geothermal systems (EGS) and supercritical geothermal resource extraction, could unlock vast untapped potential. Collaboration between governments, industries, and research institutions is essential for developing these technologies and overcoming non-technical barriers like regulatory hurdles and land use conflicts.
A Path Forward
The IEA's roadmap outlines key steps for stakeholders to accelerate geothermal adoption, including:
1. Increasing investments in exploration and drilling technologies.
2. Promoting policies that incentivize geothermal development.
3. Enhancing international cooperation to share knowledge and best practices.
The agency envisions a future where geothermal energy becomes a cornerstone of the global energy mix, offering sustainable solutions for electricity and heat while supporting economic growth and environmental preservation. To realize this vision, immediate and concerted efforts from all stakeholders are imperative.
Earlier on IRENA and IGA published a similar research findings on Geothermal which is instrumental
For further insights, explore the full report on the International Energy Agency here
Source:IEA
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