Iceland and Ethiopia agree geothermal development link up

The Icelandic International Development Agency (ICEIDA) has agreed a deal with the Ethiopian government which will see the North Atlantic nation launch geothermal surface exploration in Ethiopia as well as start capacity building for geothermal development.

The initial objective of the initiative is to identify potential locations for exploration drilling within the areas targeted and develop capacity in the East African country to improve geothermal energy production.

The government of Ethiopia is currently introducing a strategy to advance its renewable energy resources, such as geothermal and hydro side by side, with the aim of increasing the energy it can produce.

The geothermal surface exploration project will be based in the areas of Aluto Langano and Tendaho Alalobeda, both thought to have huge potential for energy production. Furthermore, a capacity building initiative for geothermal exploration will be launched in Gedemsa.

Iceland initiated the agreement with Ethiopia under the Iceland – World Bank geothermal energy compact. It is the second project the North Atlantic country has initiated under the ICEIDA/NDF Geothermal Exploration Project, after the first one was launched in Rwanda.