Ethiopia is reviving development of the Corbetti geothermal project with Taranis becoming majority shareholder. Completed in early October, the transaction opens a new financing and exploratory-drilling preparation phase in the Corbetti caldera, around 250 kilometers south of Addis Ababa. The initial envisaged plant would generate 50 megawatts, with a potential 100 MW expansion. No commissioning timetable has been announced.
A new shareholder to advance drilling
Taranis acquired majority control of project holding company Corbetti HoldCo, while InfraCo Africa, a Private Infrastructure Development Group (PIDG) subsidiary, retains a significant minority interest. Following years of development, the restructuring aims to bring capital and operational skills to a decisive stage: confirming the geothermal resource through drilling.
The announced financial commitment can reach $27 million. It includes around $17.1 million in equity and a $9.5 million convertible loan facility for exploratory drilling. The package therefore advances an early-stage project; it does not represent plant construction costs, which were not specified in available information.
Financing sequence matters. Geothermal development requires substantial spending before knowing whether a reservoir can sustainably supply a plant’s steam needs. Exploratory wells must confirm reservoir temperature, permeability and flow. Results will determine production well selection, steam-field design and construction-financing requirements.
First a 50 MW plant, then a possible expansion
The development plan envisages an initial 50 MW phase based on production wells and steam-gathering facilities. A second phase could add 100 MW, bringing targeted capacity to 150 MW. This ramp-up remains conditional: resources must be confirmed, surface investment arranged and commercial agreements maintained or updated.
Corbetti has a power purchase agreement signed in 2020 with Ethiopian Electric Power and an implementation agreement with the state. In 2024, the purchase agreement was extended by two years to allow drilling preparations to continue. New ownership restarts development, but alone guarantees neither financial close nor a delivery date. Upcoming wells, published results and an investment decision will be more informative than announced nameplate capacity.
Energy complementing hydropower
Ethiopia’s electricity system depends heavily on hydropower. This resource enabled substantial renewable generation, but also exposes the system to hydrological variability and concentration in a few large facilities. Geothermal can diversify the portfolio with more regular production, provided reservoir and equipment performance hold.
This complementarity is relevant to household, service and industrial demand, while supporting national diversification objectives. Ethiopia’s 2030 energy compact notably envisages a higher share of non-hydro renewables. Corbetti could contribute, but its role remains limited until drilling and facilities are completed.
The plant should not be considered in isolation. Integration will depend on grid capacity to transport electricity from Oromia, purchase conditions and the public buyer’s financial strength. The project already benefits from a long-term sales agreement, but past delays recall that contracts do not replace infrastructure, construction and actually secured financing.
Execution risk remains high
Corbetti is among Ethiopia’s most contractually advanced private geothermal projects, but has not yet passed the drilling stage needed to establish exploitable resources. Majority investment clarifies industrial leadership and funds that stage without removing geothermal exploration’s technical risks.
Investors must monitor well timing and numbers, test results, revised project costs, updated Ethiopian Electric Power agreements and construction-financing availability. The convertible facility reduces some immediate capital needs, but is not a final investment decision for the entire complex.
For Ethiopia, the new ownership structure is a positive signal for mobilizing private capital in a technology still little developed locally. Corbetti’s strategic value will nevertheless depend on passing the drilling phase and turning potential resources into electricity delivered to the grid. The project is advancing; production remains to be demonstrated.