Access to clean energy is key to the advancement of Ethiopia. As such, pursuing renewable energy development is essential to attain energy security and economic sustainability, while helping to mitigate climate change and its devastating impacts. Ethiopia is among few countries in the world with great potential for renewable energy generation. Aware of the country’s potential, the government launched a plan to speed up the development of different renewable energy sources, a decade ago.
Tulu Moye Geothermal Operations (TMGO) project is one of the initiatives launched to develop an optimum level of renewable energy mix in Ethiopia. The project, expected to generate 150MW at a cost of USD800 million, is situated in the main Ethiopian Rift Valley close to the eastern margins of the rift and northwest of Assela town. Established in December 2017, TMGO, was formed by a consortium of western investors—French firm Meridiam and the Icelandic Geothermal company Reykjavik Geothermal. TMGO signed a power purchase agreement and an implementation agreement with the government on December 19, 2017 and restated documentation in March 2020. This makes the company the first private-sector-led power project in Ethiopia.