Major international geothermal developers Tulu Moye and Corbetti Geothermal enter formal negotiations with Ethiopian authorities to resolve legal disputes, adjust tariff structures, and resume drilling operations in the Great Rift Valley
By Staff Writer
(Nairobi, Kenya) — Two major international geothermal energy developers—Tulu Moye Geothermal PLC and Corbetti Geothermal—have entered formal negotiations with Ethiopian government authorities to resolve legal disputes, adjust tariff structures, and resume drilling operations in the Great Rift Valley.
Documentary evidence confirms that the Ethiopian government recently reached a settlement with Tulu Moye Geothermal PLC, a consortium owned by French infrastructure firm Meridiam and Icelandic energy developer Reykjavik Geothermal. The agreement formally halts pending litigation and initiates contractual revisions across key state ministries, setting the groundwork for an immediate return to field operations.
Tulu Moye Geothermal suspended drilling activities and evacuated international personnel from its concession area in the Arsi Zone of the Oromia Region in 2015 E.C. (2022/23 G.C.), citing armed insurgent attacks on its site facilities. The suspension triggered a prolonged legal dispute between project developers and the federal government. While Ethiopian officials argued that the Ethiopian National Defense Force had secured the site perimeter, major shareholder Meridiam sought operational loss compensation through the World Bank’s Multilateral Investment Guarantee Agency (MIGA).
Under the newly signed settlement framework, federal authorities and company executives agreed to drop mutual claims. Joint negotiating teams comprising representatives from the Ministry of Finance, the Ministry of Mines, the Ministry of Justice, and Ethiopian Electric Power (EEP) are currently restructuring the project’s Power Purchase Agreement (PPA) and investment terms. The parties expect to execute a formal Letter of Intent shortly, enabling the firm to resume its multi-phase 500-megawatt development program originally launched under the Power Africa initiative.
Concurrently, Corbetti Geothermal has reopened high-level negotiations with EEP and the Ministry of Finance to upwardly adjust its bulk electricity sales tariff. Although initial operational delays stemmed from administrative non-compliance and site security issues—leading to the temporary cancellation of two exploration licenses—financial constraints and low power purchase rates ultimately forced a complete shutdown of site activities.
To address capital deficits, Corbetti Geothermal secured a strategic investment partnership with Taranis Operations, an affiliate of the international energy entity Perenco Group. Supported by the new equity injection, the company is revising its previous project implementation agreement and tariff terms with EEP. Upon finalization of the adjusted electricity pricing structure, Corbetti Geothermal plans to resume deep geothermal well drilling operations.
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