The Private Infrastructure Development Group (PIDG) has announced that Taranis Operations has signed a convertible loan agreement with the Corbetti Geothermal project in Ethiopia, marking the first step in a broader partnership that could see Taranis invest up to $27 million in equity into the project.

The announcement was made at the Africa Energy Forum in Cape Town.

Located within Ethiopia’s Corbetti Caldera, around 250 kilometres from Addis Ababa, the project is one of the first geothermal developments in Africa to be financed and developed by private capital. PIDG, through its project development arm InfraCo, has been involved in the project since 2015.

The funding agreement is expected to support the next stage of development, including exploration drilling activities. Once completed, the first phase of the project will include production wells and a steam field supplying a 50MW geothermal power plant. A second phase is planned to add a further 100MW of capacity, contributing to Ethiopia’s renewable energy generation targets.

Geothermal energy is seen as an important addition to Ethiopia’s power mix, providing a reliable source of baseload renewable electricity. While more than 95% of the country’s electricity generation currently comes from hydropower, changing rainfall patterns linked to climate change have highlighted the need for greater diversification of energy sources.

“We are excited to progress the Corbetti Geothermal project with Taranis,” said Omar Jabri, Head of Business Development (Africa) for InfraCo at PIDG.

“As a private sector company with a proven track record in renewables, Taranis brings its technical expertise and capital to the project, and its work has strong alignment with PIDG’s mandate.”

Jabri said the project has long been viewed as a strategic opportunity to expand Ethiopia’s renewable energy capacity.

“Harnessing the potential of geothermal energy to provide Ethiopia’s homes and businesses with sustainable, baseload power has long been our priority, and we are pleased to reach this important milestone with our partners today,” he said.

“Corbetti Geothermal is the kind of project where Taranis can deliver the greatest value,” said Emmanuel Colombel, Chief Executive Officer of Taranis.

“By helping to overcome complex technical challenges and accelerate project development, we are supporting the expansion of reliable, low-carbon energy in Ethiopia.”

Colombel said the project highlights the role geothermal energy can play in supporting economic development and energy security.

“Corbetti is the perfect opportunity to demonstrate how geothermal power can play a critical role in improving energy access for people and businesses in the region,” he said.