Corbetti Geothermal PLC (the Company) is developing a geothermal power project in the Corbetti caldera in Ethiopia. Berkeley Energy (BE), which is the fund manager of the African Renewable Energy Fund (AREF), along with Reykjavik Geothermal (RG) are the principal participants in the project.
The Company has a license that will allow it to develop up to 500 MW of electrical generating capacity in the Corbetti caldera (the Project). Numerous surface studies have shown that this caldera has significant geothermal potential that permits an overall project of this size. The Company has negotiated a PPA with Ethiopian Electric Power (EEP) and a support agreement (IA) with the Government of Ethiopia (GoE), signed in March 2020. The PPA sets out the commercial terms for a project of up to 150 MW split into two phases of 50 MW and 100 MW. The PPA also grants the Company a right of first refusal over further geothermal expansion up to 500 MW. The contracts are in the process of being made effective by GoE through satisfaction of a number of conditions precedent. Swift resolution is expected.
