Power Grid

An impact investment company has acquired a majority stake in Ethiopia’s Corbetti geothermal project, marking a significant development in the country’s renewable energy sector. The investor, Taranis Operations Limited, has completed the acquisition of a controlling interest in Corbetti HoldCo Limited, the company overseeing the project.

The transaction is expected to support the next phase of exploration and development, strengthening private-sector participation in Ethiopia’s energy infrastructure. The project is among Africa’s early geothermal power developments backed by private capital.

Located approximately 250 kilometres south of Addis Ababa, the Corbetti project aims to harness underground heat to generate reliable electricity. Taranis plans to invest up to US$27 million in the project’s next development phase, while InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), will retain a significant minority ownership stake.

The investment structure includes funding for exploration drilling, which is necessary to assess and confirm the geothermal resource before the project can progress towards construction and power generation.

The initial development phase is expected to deliver around 50 megawatts (MW) of electricity, with the potential to expand capacity by a further 100 MW, bringing the project’s total planned capacity to 150 MW. However, these targets remain dependent on the results of exploration drilling and subsequent development decisions.

The project is supported by a power purchase agreement and an implementation agreement signed in 2020 with Ethiopian Electric Power and the Ethiopian government, providing an established framework for its development.

The investment could contribute to Ethiopia’s efforts to diversify its electricity generation mix, which relies heavily on hydropower and is therefore vulnerable to fluctuations in rainfall. Unlike solar and wind power, geothermal energy can provide continuous electricity generation when the resource and facilities are properly developed. If successful, Corbetti could help improve the reliability of electricity supplies, support economic growth and demonstrate the role of private investment in developing large-scale renewable energy infrastructure across Africa.