The Private Infrastructure Development Group (PIDG) finalized a convertible loan agreement with Taranis Operations for Ethiopia’s Corbetti Geothermal project, marking the first step in a broader partnership that could see Taranis invest up to $27 million in equity into the project.
The agreement was announced at the Africa Energy Forum in Cape Town. It represents the initial phase of a partnership designed to expand geothermal energy in Ethiopia. The project sits in the Corbetti Caldera, roughly 250 kilometers from Addis Ababa, and stands as one of the first in Africa financed and developed by private capital.
PIDG, through its development arm InfraCo, has supported Corbetti 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.
The country depends on hydropower for over 95% of its electricity. Changing rainfall patterns linked to climate change have highlighted the need for greater diversification of energy sources. Geothermal energy is seen as an important addition to Ethiopia’s power mix, providing a reliable source of baseload renewable electricity.
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Omar Jabri, Head of Business Development (Africa) for InfraCo at PIDG, described the project as a strategic move. “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 stated.
Taranis, a private renewables firm, contributes technical knowledge and funding. Emmanuel Colombel, Chief Executive Officer of Taranis, said Corbetti demonstrates geothermal potential in the region. “By helping to overcome complex technical challenges and accelerate project development, we are supporting the expansion of reliable, low-carbon energy in Ethiopia,” he explained.
A test case for private geothermal investment
The project’s private financing distinguishes it in a sector typically funded by public or multilateral sources. Success could encourage similar ventures across East Africa, where geothermal resources remain mostly unused.
The collaboration between PIDG and Taranis reflects a shift toward private investment in infrastructure projects once led by governments or development banks. Scaling this model remains uncertain, but Corbetti serves as an early example of private capital advancing geothermal development in Africa.
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Jabri highlighted the project’s alignment with PIDG’s goal to attract private investment in infrastructure. “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,” he said.
Work over the next few months will concentrate on drilling and site preparation. The first power generation is expected within the next few years. If the project succeeds, it may encourage more private investment in Ethiopia’s energy sector, though regulatory and technical obstacles persist.
For now, the deal represents a modest but important advance toward a more balanced energy system in Ethiopia.
